Citigroup Tops Venezuela Bond Ranks With PDVSA Deal

[ChangoLoa]

Citigroup Inc. is set to overtake Deutsche Bank AG and Credit Suisse Group AG as the top underwriter of Venezuelan debt this year after managing state oil company Petroleos de Venezuela SA’s $3 billion bond sale.

PDVSA’s offering is the biggest by a company in Venezuela this year and allows New York-based Citigroup to move to No. 1 in the bond rankings for the first time in the country, according to data compiled by Bloomberg. Deutsche Bank and Credit Suisse are tied for second place at $1.5 billion each after co-managing an August government debt sale.

The oil producer and President Hugo Chavez are stepping up bond sales as PDVSA finances exploration projects, while the government seeks dollars for importers struggling with currency constraints and to pay for social programs. The presence of a local investment team in Venezuela helped Citigroup secure the PDVSA transaction, said Russell Dallen, head bond trader at Caracas Capital Markets at BBO Financial Services in Miami.

More:
http://www.businessweek.com/news/2010-10-21/citigroup-tops-venezuela-bond-ranks-with-pdvsa-deal.html

[social_critic]

1. This report is wrong

The bond money is not used for exploration projects. The money is used to plug the government deficit.