PDVSA Announced 2013 Retap

Venezuelan oil company PDVSA announced Thursday a $1.783bn retap of its 8% 2013 that was sold through a private placement to the central bank. According to Barclays, the central bank could potentially try to use the new supply to swap it for existing 2011s held by investors who declined to participate in a similar transaction earlier this year. The market had expected a reopening of the 2022s, but investors may now be willing to hold the 2013s which mature after the presidential elections next year, says Barclays. Talk that President Hugo Chavez may be unable to run due to poor health has raised hopes of regime change and caused substantial spread tightening in sovereign paper and CDS.