Caracas.-Petróleos de Venezuela, SA ("PDVSA") announced the issuance of a new international bond (the "Offer") for an amount of U.S. $ 3,000 million, with semiannual coupon and maturity equal to depreciation in the years 2020, 2021 and 2022, which may be acquired in the primary market in Bolivars at the official exchange rate of Bs 4.30 per U.S. $ 1.00.
The offer of such bonds will be directed to the productive sector companies, mainly from the sectors of food, health, machinery and equipment, petroleum and natural persons residing in the Bolivarian Republic of Venezuela and to the supervised financial institutions by Superintendence of Banking Sector Institutions included in the "List of Authorized Institutions to Participate in Securities Placement of PDVSA."
The new notes have not been nor will be registered under the Capital Market Law of the United States of America (Securities Act of 1933). It is the intention to apply for the registration of new bonds on the Luxembourg Stock Exchange. It has been offering under the Regulation S of the Capital Market Law of the United States of America (Securities Act of 1933), Rule 144A, and the Securities Exchange Act of Venezuela.
According to the comparative study published on December 6, 2010 by Petroleum Intelligence Weekly (PIW), PDVSA continues to improve its positions in its various activities, ranking as the fourth among the largest global companies in the oil business. The study is based on a combination of operational criteria: reserves, production, refining and sales, where PDVSA holds the following positions:
• Second in proven oil reserves.
• Sixth in gas reserves.
• Third in oil production.
• Fourth in refining capacity.
• Eighth in sales.
According to the most recent certification of oil reserves in the Orinoco Oil Belt, Venezuela reached the order proved reserves of 297 billion barrels, making it the country with the largest hydrocarbon reserves in the world.
All details relating to the process of placing orders, amount of capital to be issued, terms and other conditions of the offer of new bonds, and any other relevant information will be posted on the PDVSA website (www. pdvsa.com) and on the website of the Central Bank of Venezuela (www.bcv.org.ve).