The unusual issue, which mixed Venezuelan and Argentine debt and was aimed at Venezuelan markets, had been expected to be heavily oversubscribed because local investors are eager to buy such instruments as a hedge against devaluation.

Chavez, a self-styled socialist revolutionary seeking re-election on Dec. 3, said the demand for the dollar-denominated debt showed he did not need support from Washington-based lenders such as the International Monetary Fund.

The success of the issue, which was carried out with the fellow leftist government of Argentina, encouraged Venezuela to consider a debt issue aimed at international markets, he said.

"We know there is enough demand in the national market but we are also going to go to the international market," Chavez said at the inauguration of an oil project.

Chavez may rail almost daily against capitalism and America, but his economic policies are underpinned by regular transactions on debt markets and by oil sales to the United States -- Venezuela's top customer.

Venezuela offered the Southern Bond last week to try to soak up excess local currency in circulation to lower the black-market exchange rate, which had climbed to 3,000 bolivars to the dollar. Investors can buy the debt at the official fixed rate of 2,150 bolivars to the greenback.