Venezuela Prices Third Bono del Sur

Venezuela has launched the sale of $1.2bn equivalent in new Bonos del Sur at a price of 108. The notes combine $600m in Argentine Boden 7% dollar bonds due 2015 with $600m in 7.125%Venezuelan TICC dollar-linked bonds due 2015. They can be stripped after pricing and traded separately. The government will use proceeds to pay down debt coming due this year and recoup funds used to buy the Argentine bonds last month. The sale comes after Venezuela canceled a larger August sale due to global markets turmoil. The bonds are marketed to local investors, satisfying demand for foreign currency. They should help to reduce the gap between the official and black market VEB rates.