The bond follows a $3 billion sovereign issue in December and carries a 12.75 coupon -- partly to help ensure demand for the paper in secondary markets, analysts say.

PDVSA said the bond is to raise money for its investments. But the paper is also aimed at providing a foreign exchange mechanism for importers of food and other basic products as inflation soars on the OPEC member country.

In January alone, consumer prices rose 2.7 percent as the cost of imports rose on higher global food prices and following a devaluation of the bolivar currency in December.

Many imported goods are bought with dollars obtained on a black market that circumvents a currency regime. Dollars bought on the black market cost about 10 bolivars compared to as little as 4.3 bolivars per dollar via the official channels, but supply is limited.

The government of President Hugo Chavez has long sold dollar denominated bonds in bolivars to give importers and foreign companies access to dollars at a cheaper rate at the same time as mopping up liquidity. Such measures are also seen to fight inflation by an administration that runs a lax monetary policy.

Analysts expect a series of bond offerings this year by Chavez s government and the oil company that is the financial motor of his socialist policies.

Venezuela's bonds are some of the most widely traded emerging market debt in the world thanks to their high yields on perceived risk.

One of the world's biggest oil companies, PDVSA is suffering from falling production and cash-flow problems, and is counting on heavy investment -- in partnership with foreign companies -- in the Orinoco heavy crude belt to reverse that.