PDVSA Launches Bond Sale, Swap

PDVSA plans to swap 2011 bonds for 2013s in an offer to investors through November 12 and offer new 2017 bonds through the end of the week. The Venezuelan state-owned oil company will sell the $3bn worth of B+ 8.5% of 2017s at par in an offer through Friday. As with previous government offerings, the offer is directed at individuals and businesses with the “sector productivo nacional,” and investors will be allowed to buy the dollar-denominated bonds with Bolivars at a VEB4.30 per dollar rate. Results are set to be announced Monday. Separately, PDVSA will offer holders of its 6% 2011 bond new 8% 2013 bonds at an exchange rate of $1,125 per $1,000 if done by October 28, and $1,015 per $1,000 if done after. Citi is managing both processes.