Venie issuance to beat expectations as PDVSA hits captive market

By Oliver West
15 May 2014

PDVSA’s $5bn bond issuance announced on Wednesday has triggered worries that the company will take itself into even more debt than expected this year as the Venezuelan government looks to bring dollars into the economy.

Although increasing demand for Venezuelan paper means this is probably a good plan, according one analyst, Barclays said on Thursday that the additional supply risk raises questions about the government’s commitment to necessary economic adjustments.

The advent earlier in 2014 of Sicad II, the exchange rate mechanism that ...

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