PDVSA Sells $3bn Bond

PDVSA says it has issued $3bn in new 2017 bonds, getting nearly $7bn in demand from 105,307 orders. The B+ 8.5% bond priced at par. As with previous government offerings, the offer is directed at individuals and businesses with the “sector productivo nacional,” what Venezuela calls businesses that are strategically important the nation’s economy and investors will be allowed to buy the dollar-denominated bonds with Bolivars at a VEB4.30 per dollar rate. Separately, PDVSA will offer holders of its 0% 2011 bond new 8% of 2013 bonds at an exchange rate of $1,125 per $1,000 if done by October 28, and $1,095 per $1,000 if done later. Citi ran the new issue and is managing the liability management.