June
29, 2004
Venezuela's state oil company
to buy back US$2.5 billion in bonds
(AP Online) - "Venezuela's state oil
company will buy back US$2.5 billion and euro88
million in bonds as part of a plan to reduce its
foreign debt.
Petróleos de Venezuela S.A., or PDVSA,
will accept offers between July 12-26, a company
statement said. The bonds were set to expire between
2006 and 2028.
The statement said PDVSA was trying to achieve
'greater financial flexibility' and reduce its
US$6 billion total debt. The transaction will
be handled by Deutsche Bank Securities Inc. and
J.P. Morgan Securities Inc.
The buy back takes advantage of a financial bonanza
created by buoyant oil prices. PDVSA President
Alí Rodríguez said the company will
pay US$20 billion in government taxes this year,
166 percent more than the amount planned in the
2004 budget.
The budget was based on an average oil price of
US$18.5 a barrel but Venezuelan oil is currently
at about US$30 a barrel".
