Venezuela deal plays to $19.4 billion of orders; State Bank of India plans up to $1 billion

By Paul A. Harris

St. Louis, Oct. 5 - Venezuela announced on Monday that its planned $3 billion offering of bonds is playing to $19.4 billion of demand.

As a result of the oversubscription, president Hugo Chavez said the amount could be increased to $4 billion to make room for more small and medium investors, the release said.

That is the same amount market sources were expecting before the deal launched.

Before any upsizing, the deal is to be comprised of $1.5 billion of 10-year bonds and $1.5 billion of 15-year paper.

The minimum price will be 135% and the maximum price will be 140%. The final price is expected to be set Tuesday.

Orders were taken from Sept. 29 to Oct. 2.

Deutsche Bank and Citigroup have the books for the Regulation S sale.

State Bank of India plans deal

Also planning a deal is State Bank of India, according to market sources.

The state-run bank is expected to bring up to $1 billion of global bonds this week.

Barclays Capital, Citigroup, HSBC, JP Morgan and UBS AG are managing the sale, which, like Venezuela, is being sold under Regulation S.

Russia steady, Hutchison eases

In trading, Russia's 7½% global bonds which mature in March 2030 were little changed during the European session on Monday, according to a market source in London, who said that they finished the day at 109 3/8 bid, 109 5/8 offered, versus last week's 109½ bid, 109¾ offered.

In corporates, the recent issues of Hutchison Whampoa Ltd., once again pushed slightly wider during the European session.

The 5¾% notes due 2019, which priced in a $1 billion offering at Treasuries plus 335 bps in early September, were at 255 bps bid, 235 bps offered on Monday in Europe.

Late Friday a U.S.-based trader spotted the Hutchison Whampoa 5¾% notes due 2019 at 250 bps bid, 245 bps offered.

The reason for the widening is oversupply, sources say, alluding to the fact that the Hong Kong-based conglomerate priced $3 billion of paper in early September.

In addition to the 2019 bonds, the company priced $2 billion of 4 5/8% notes due 2015 at Treasuries plus 227.5 bps.

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