PDVSA Set for $3bn Bond

As anticipated, Venezuela’s PDVSA has announced a new bond issue, for $3bn, to be sold to the country’s central bank. The 2035 bonds will come with a 9.75% coupon, and amortize in 3 equal parts in each of the final 3 years. The state-owned oil company plans to use proceeds for general corporate purposes and social projects. The issue was expected by analysts following the government’s lifting of a debt ceiling earlier this year, ahead of increased spending ahead of elections.