Venezuela to sell $1.5 billion equivalent dual-currency bonds at 106

New York, March 25 - The Bolivarian Republic of Venezuela will sell $1.5 billion equivalent of dual-currency bonds at a price of 106.

The sale was oversubscribed, with offers to buy a total of 1.6 million of the bond units submitted, 39% of the total offers being for 10 or less units.

Venezuela accepted offers for 1 million units with a principal amount of Bs. 2.88 at a price of 106.00.

The units are made up of equal amounts of 1.15% dollar notes due Sept. 30, 2004, 18% Vebonos due Sept. 18, 2009 and 15.5% Vebonos due April 22, 2010. The dollar notes will be interchangeable with the notes issued on March 5.

In total, Venezuela will issue $500 million of the dollar notes and Bs. 960 billion of each of the Vebonos.

Offers to buy 11 or more units will be pro rated with a factor of 64.48%.

Venezuela had said it would sell a minimum of 250,000 units, corresponding to $125 million of dollar notes and Bs. 240 billion of each of the Vebonos.

J.P. Morgan Securities Ltd. in London and Merrill Lynch & Co. in New York are coordinators for the offering. The securities will not be registered with the Securities and Exchange Commission and are being sold outside the United States under Regulation S.

Proceeds will be used to refinance and restructure Venezuela's public debt.

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