Venezuela's state oil company, Petroleoleos de Venezuela SA (PDVSA), has launched a bond issue of up to US$3 billion dubbed Petrobono 2011, according to documents published on the company's website.
The issue will be dominated in US dollars but payable in Venezuelan bolívares in July 2011.
Local press has suggested the offer could be advantageous to purchasers because of the difference between the official and black market exchange rates.
The minimum investment in the issue is US$2 million, according to the documents.
PDVSA has said that proceeds from the round will be used to pay its debt to domestic service providers.
Venezuela's central bank (BCV) is arranging the issue.
The BCV president, Nelson Merentes, explained that the bonds will expire on July 8, 2011. They will be bought with bolivars but denominated in US dollars according to the official exchange rate, 2.15 bolivars to the dollar, at a minimum of $2 million and from there in increments of $1 million. The bonds will only be paid back when they expire.
PDVSA said it will start to take purchase offers on June 26 at 9:00 a.m.
Caracas time (1330 GMT), and will finish accepting bids on July 1.
The company will announce the adjudications and the results on July 2.
PDVSA, in a press statement, said that the funds obtained from the sale of the bonds will go towards the "fulfillment of local obligations" as part of the national "Sowing the Oil Plan," (Siembra Petrolera), a long term investment plan in infrastructure, integration and reserve certification. According to the Bolivarian News Agency, the funds will also go towards PDVSA's debt to local service providers.
PDVSA president and the country's oil and energy minister Rafael Ramírez has said that PDVSA owes US$5.6 billion to service providers.
Last month, Venezuela began nationalizing assets of some service firms that operate in the country.