Euroclear opens up Chilean bonds to investors

Investors will gain access to Chilean government bonds for the first time as of February this year.

By Hayley McDowell

Euroclear has teamed up with the Chilean Ministry of Finance to provide international and domestic investors with access to Republic of Chile government bonds for the very first time.

The domestic peso-denominated bonds will be accessible as of 1 February this year due to the cooperation agreement. 

The government bonds offered and sold to investors represent approximately 20% of the global issuance and were settled through Euroclear Bank’s account in Deposito Central de Valores (DCV), the Chilean Central Securities Depository (CSD).

Rodrigo Valdés, Minister of Finance of Chile, explained the partnership with Euroclear is an important milestone for the country’s capital markets.

“Being able to tap into the liquidity provided by international investors is tremendously important for the continued development of our local market,” he said.

Stephan Pouyat, global head of capital markets and fund services at Euroclear, added the new regulatory framework - including the new tax treatment rule - allowed Euroclear to extend its presence in Latin America.

“A more robust financial environment supports the sustainable development of social and physical infrastructure in Chile,” he said.