JPMorgan Chase & Co. and Jefferies Financial Group Inc. are lining up trips to Caracas amid growing demand from investors for a firsthand look into Venezuela’s efforts to revive its oil-rich economy and restructure its debt after years of isolation.
Jefferies executives traveled to the South American country this week and are considering a return trip in the coming weeks, while JPMorgan is working to organize a visit, possibly with clients, according to people familiar with the matter.
Representatives from JPMorgan and Jefferies declined to comment.
The delegations would be among the first known visits by major US banks, which must navigate stringent internal approval processes as well as a sanctions regime that, while easing, continues to evolve. To date, most have been organized by boutique advisory firms, specialized consultancies and political-risk advisers.
Foreign investors are rushing to position themselves for a reopening of Venezuela’s economy as relations with Washington warm following President Nicolas Maduro’s capture in January. The acting government, led by Delcy Rodriguez, has been cooperating with the Trump administration to reopen the oil industry to foreign capital and vowed to restructure an estimated $170 billion of debt, triggering a massive rally in its defaulted bonds.
On its trip this week, Jefferies met with banking executives in an attempt to assess conditions in Caracas. All of the executives were cleared by the bank’s compliance department, the people said.
An event organized by US-based consultant Signum Global Advisors in late March drew more than 50 hedge-fund and oil executives to the capital, who met with Rodriguez at the presidential palace.
Venezuela recently hired Hogan Lovells US LLP as legal counsel for its sovereign debt restructuring and retained Centerview Partners as financial adviser, setting the stage for one of the most extensive debt restructurings undertaken since the Greek crisis more than a decade ago. However, further US authorization is needed for the country to start engaging in formal talks with creditors.