March 7, 2005
New issues: Venezuela ups first euro-bond offering

(Financial Times) - "Strong demand for Venezuela's first euro-denominated bond in more than three years led the Latin American country to increase the size and reduce the yield offered to investors.

Demand for emerging markets debt showed no signs of waning as the government of Caracas offered a benchmark bond with a 10-year maturity. The issue was Venezuela's first in the euro market since June 2001. The size of the bond was increased to €1bn from about €500m initially and the yield was cut to 7.10 per cent from 7.20 per cent after 350 investors placed orders in excess of €4bn for the issue. The yield equated to a premium of 333 basis points above the mid-swap rate, 10bp inside the original price guidance. Deutsche Bank and UBS lead-managed the sale (...)

Venezuela is one of the world's top 10 oil exporters, making it a beneficiary of the high crude oil prices in recent years. Last year the country's credit rating was upgraded after Hugo Chávez, the president, won a referendum on his presidency and pledged to service the country's debt (...)".