Venezuela Targets Domestic Debt

Venezuela has authorized the sale of VEB45bn ($10.5bn) in its domestic market, according to decrees published in the government’s official gazette. Although conditions for issuance could be changed, the move is seen as part of a shift toward greater fundraising in the domestic than international market, according to Barclays. “As a consequence of these restrictions, most external issuance by the Venezuelan public sector will likely come from PDVSA, starting with a private placement to the central bank,” Barclays says. It expects a private placement to the central bank – an operation that was supposed to take place last year – in Q1, at $2.5bn-$3.0bn in size.