Venezuela to auction $1 billion Bono del Sur for itself, Argentina

New York, Nov. 7 - Venezuela announced it plans to auction $1 billion of Bono del Sur.

Each $1,000 bond will be made up of three instruments, one issued by Venezuela and two by Argentina.

The Venezuela portion will be $500 of TICC042017 bonds due April 6, 2017.

Argentina's share will be $300 of floating-rate Boden 12 bonds due Aug. 3, 2012 and $200 of 7% Boden 15 bonds due Oct. 3, 2015.

After settlement the three components can be traded separately.

The Venezuela bond will be denominated in dollars but make payments of principal and interest in bolivars at the official exchange rate.

Venezuela's ministry of finance said the objective of the instrument is to "democratize access" to the Latin American capital markets for Venezuela's investors.

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