I can't imagine who would be willing to buy PDVSA debt at any price, but nevertheless the state-owned oil company is announcing a planned issue for $3bn worth of zero-coupon debt denominated in bolivars, according to reports in Bloomberg and the Journal, among others.
The government is saying that these bonds are not intended for the secondary market, essentially forcing the investor to have the confidence that they will be paid back at maturity in 2011.
Price/yield info on these is still yet to come...PDVSA will accept orders until July 1, the results will be published July 2 and sales are expected to occur July 8. So stay tuned for more, but I really wouldn't be surprised if they don't raise expected funds regardless of where pricing comes out. In the meantime, see our Energy tab above for recent news that has brought PDVSA to this situation.
The government is saying that these bonds are not intended for the secondary market, essentially forcing the investor to have the confidence that they will be paid back at maturity in 2011.
Price/yield info on these is still yet to come...PDVSA will accept orders until July 1, the results will be published July 2 and sales are expected to occur July 8. So stay tuned for more, but I really wouldn't be surprised if they don't raise expected funds regardless of where pricing comes out. In the meantime, see our Energy tab above for recent news that has brought PDVSA to this situation.
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