PDVSA Sells US$7.5bn in Bonds

Venezuela's state oil firm PDVSA has sold US$7.5bn in bonds with 10-30 years maturity and interest rates of 5%-plus, the company said in a statement.

PDVSA had announced plans to sell up to US$5bn before the bond issue.

"Due to high demand from investors, PDVSA is pleased to announce the increase of its bond issue to US$7.5bn, maintaining the original terms of the combined offer," the company said.

The sale breaks down as follows: US$3bn with 10-year maturity, or 40% of the offer; US$3bn (40%) with 20-year maturity; and US$1.5bn (20%) with 30-year maturity.

Each buyer will receive a combination of the three types of bonds in the above-mentioned percentages.

Bond proceeds will go to E&P efforts to expand production to 5.8Mb/d over the next five years.

The move gives PDVSA total debt of US$14.5bn, of which US$12.5bn has been contracted this year.

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