Venezuelan Vital Stats
CAF's $100 million bolivar bond issue in Venezuela brings some much-needed variety to local investors, and hopefully some vitality for the long-stale market as well.
Venezuela's domestic bond
market is bursting with liquidity. Local investors, hemmed in
by three years of exchange controls, have had little choice but
to buy Venezuela's government bonds. At least that was the case
until June, when the Andean Development Corporation (CAF), the
Caracas-based development bank, issued a $100 million,
five-year floating rate bond denominated in bolivars. Hugo
Sarmiento, CAF's chief financial officer, hopes the sale will
galvanize others to issue in Venezuela. "It is part of our
broader mission to stimulate the domestic bond markets in our
member countries," explains Sarmiento.
CAF's bolivar issue appears to have breathed new life into
Venezuela's sickly bond market. Domingo Maza Zavala, a director
at Venezuela's central bank, has since said that the country's
national oil company, Petróleos de Venezuela SA (PDVSA),
plans to issue bonds in...
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