Venezuela oil company to issue US$2b in bonds

President Hugo Chavez says Venezuela's state-run oil company plans to soon issue US$2 billion in public debt bonds.

Chavez says the securities to be offered by PDVSA will be bought and sold in a new public-bond market.

The market created through legislation passed by the predominantly pro-Chavez legislature permits state companies to sell bonds to fund development projects.

Chavez announced the bond offer on Thursday, but he did not provide details.

PDVSA has already more than US$1 billion in bonds earlier this month.

The bond market is a key source for businesses to obtain dollars to pay for imports because the government maintains currency-exchange controls and only makes a limited amount of dollars available at official exchange rates.

- AP