Venezuela Hits Bond Market
Venezuela sold $1.6 billion of 20-year dollar-denominated
bonds to domestic investors in early April. The bonds were sold
at par with an interest rate of 7.65%. Investors bought the
bonds with bolivars; payments will be made in dollars. A month
earlier, Venezuela sold
?1 billion ($1.32 billion) in bonds to help finance debt
payments. It marked the first time since 2001 that Venezuela
issued euro bonds. The euro bonds are due in 2015 and yield
7.1%, lower than the 11% euro-bond issue by Brazil, which
carries a higher credit rating. The government of President
Hugo Chávez seeks to narrow the budget deficit to 3.5%
of GDP or $3.5 billion from 4.2% in 2004.
Analysts say high oil prices are fueling investor
Brazil Bonds Issuance
Brazil issued $1 billion in 10-year dollar-denominated bonds
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