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Chile’s peso-denominated bonds to be Euroclearable

23 January 2017


Move should educing the cost of borrowing and boost liquidity

Read more: Chile bonds settlement

Chile’s peso-denominated bonds will be "Euroclearable" from the start of February, officials announced on Monday, improving foreign investors' access to the market.

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 market.

We are confident that Euroclear's market participation will generate more demand for these bonds from international investors," he said.


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