PDVSA, Venezuela gain on Goldman bond buying; markets quiet after holiday; VimpelCom launches

By Rebecca Melvin

New York, May 30 – Venezuela was an outperformer in Latin America’s debt markets on Tuesday after news reports that Goldman Sachs Group Inc. purchased $2.8 billion of PDVSA (Petroleos de Venezuela SA) bonds last week, paying about $865 million for the paper.

“In general, stuff was up about ¼ point to ½ point in Venezuela, with the outperformer being the PDVSA 17s – the next maturity bond,” a New York-based market source said on Tuesday.

Not only did PDVSA’s universe of bond debt improve during the first session of the holiday-shortened week, but so did Venezuela sovereign debt.

The Goldman bond purchases buoyed other parts of Latin America as well. In Brazil, things were up, a market source said.

In Argentina, Grupo Clarin SA said that Cablevision SA, a subsidiary of Cablevision Holding SA, plans to price up to $50 million of class B fixed-rate notes.

Elsewhere, emerging markets opened mostly quiet on Tuesday after the long holiday weekend, with bonds on the whole mostly unchanged from Friday’s levels.

Yet, another week of inflows in emerging markets caused the arena as a whole to look supportive, a market source said, adding “it feels like a good window for supply ahead of the summer lull.”

Also, VimpelCom Holdings BV is offering dollar-denominated senior unsecured notes.

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