(Corrects instrument codes for bonds in 3rd paragraph)
CARACAS, Sept 27 (Reuters) - Venezuelan state oil company PDVSA's bonds rose on Tuesday after the company improved the terms of a swap proposal that had initially met with market misgivings.
PDVSA on Monday increased the ratio of new 2020 bonds it will offer in exchange for outstanding paper that matures in 2017, potentially boosting the interest of bondholders that saw the original one-to-one exchange offer as insufficient.
The company's 2017N issue that matures in November 2017 was up 1.800 points to a bid price of 80.800. The PDVSA 2017 bond maturing in April was up 1.150 points to bid 77.150 percent.
PDVSA is seeking to swap a maximum of $5.325 billion in 2017 maturities through the plan, helping ease the cash-flow constraints as it struggles with low oil prices and an unraveling socialist economic system.
Wall Street analysts and investors believe the company has already bought back a significant portion of the outstanding issues. PDVSA has promised to honor its commitments to bondholders even if they do not participate in the swap.
Investors have worried that PDVSA would default on its bonds as a result of the low oil prices, though many have become more optimistic in recent months on signs that President Nicolas Maduro's government is committed to paying.
Maduro dismisses default talk as a smear campaign against his administration. (Reporting by Brian Ellsworth; Editing by Alexandra Ulmer and Jeffrey Benkoe)