The Daily Journal — The Venezuelan government has hired Hogan Lovells US LLP as its strategic legal advisor to help restore the country’s access to international capital markets.
Authorities disclosed the appointment of the international law firm, which maintains major offices in Washington and London, through an official filing published by the Foreign Agents Registration Act (FARA) Unit of the U.S. Department of Justice.
The designation comes less than a month after the Venezuelan government formally launched efforts to restructure an estimated $170 billion in global liabilities. The country has remained in default since 2017. Market participants view the initiative as one of the largest and most complex sovereign debt restructurings in emerging markets in recent decades.
Lobbying and Government Relations in Washington
In a written statement cited by Bloomberg, the international law firm confirmed the start of its engagement and highlighted its prior work on Venezuela. The firm also provided consulting and lobbying services before the White House in 2014.
“The firm has experience with both Venezuela and sovereign debt restructurings. We look forward to helping guide Venezuela’s reintegration into the global economy and capital markets,” Hogan Lovells said in its official statement.
Sources familiar with the operation told Bloomberg that Norm Coleman, a former U.S. senator from Minnesota and former member of the Senate Foreign Relations Committee, will lead the legal team assigned to the Republic. Coleman will directly represent the Venezuelan state’s interests in governmental and institutional affairs within the United States.
Wall Street Optimism and Bond Rally
The international financial community has responded positively to Venezuela’s new political landscape. After U.S. authorities arrested former President Nicolás Maduro in January, the interim administration led by former Vice President Delcy Rodríguez established close channels of cooperation with Washington.
As a result, Venezuelan sovereign bonds have gained more than 80% since the beginning of the year. Benchmark Republic bonds maturing in 2027 currently trade at an average of 52 cents on the dollar. That valuation reflects expectations that bondholders could recover roughly 30% of their total claims once analysts account for accrued and unpaid interest since the start of the default.
The institutional framework behind the restructuring effort has now added a second major global player. Last week, the Venezuelan government appointed Centerview Partners as its principal financial advisor.
Source: Bloomberg
