Copying and distributing are prohibited without permission of the publisher
Chile’s peso-denominated bonds to be Euroclearable
23 January 2017
Move should educing the cost of borrowing and boost liquidity
Chile’s peso-denominated bonds will be
"Euroclearable" from the start of February, officials announced
on Monday, improving foreign investors' access to the
Euroclear, the one of the world's largest settlement houses,
is to start settling and safekeeping the debt, making it easier
for international investors to trade.
Bonds will be offered, sold and settled through Euroclear
Bank’s account in Deposito Central de Valores
(DCV), the Chilean Central Securities Depository (CSD).
"Being able to tap into the liquidity provided by
international investors is tremendously important for the
continued development of our local market," said Rodrigo
Valdés, Chili’s minister of finance.
He added that the move should yield tangible benefits such
as reducing the cost of borrowing, increasing liquidity in our
local markets and furthering investment in our economy.
Stephan Pouyat, Euroclear’s global head of
capital markets and fund services, said the work marked a
"watershed moment" for the Chilean capital markets.
"The new regulatory framework, including the new tax
treatment rule, enables Euroclear to extend its already
well-developed Latin America offering and provide international
investors with a simple, efficient and cost-effective way of
accessing Chilean assets.
Fernando Yañez , general manager of DCV, said Chilean
sovereign bonds becoming Euroclearable is good news for the
We are confident that Euroclear's market participation will
generate more demand for these bonds from international
investors," he said.