PDVSA Raises $3.15bn

PDVSA has reopened $3.15bn of its 8.5% coupon 2017 bonds, it says. The Venezuelan state-owned oil producer is selling them to the “Central Bank of Venezuela and other funds” through a private placement, it says, a method it has used in previous transactions. Approximately $2.5bn would go to the central bank to pay a loan, Barclays says in a report, with the remainder going to pension funds of public institutions. The latter are expected to keep the bond until maturity. That portion should not impact the market, while the portion given to the BCV will be progressively sold to the market, Barclays says. PDVSA is rated B+.