Venezuela public bonds oversubscribed with $19.4 billion demand

By Caroline Salls

Pittsburgh, Oct. 5 - Republica Bolivariana de Venezuela said it received demand for $19.4 billion of public bonds, exceeding the planned $3 billion issuance amount, according to a news release.

As a result of the oversubscription, president Hugo Chavez said the amount could be increased to $4 billion to make room for more small and medium investors, the release said.

Minister of popular power for economy and finance Ali Rodriguez Araque said in the release that the high demand reflected the investors' confidence in Venezuela's ability to pay.

As previously reported, the issuance is scheduled to be comprised of $1.5 billion of bonds that will mature on Oct. 13, 2019 and $1.5 billion that will mature on Oct. 13, 2024.

Venezuela said the minimum price will be 135% and the maximum price will be 140%. The final price is expected to be set Tuesday.

Orders were taken from Sept. 29 to Oct. 2.

Deutsche Bank and Citigroup will run the books for the Regulation S-only deal.

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