Peru goes live with Euroclear foreign investor link

Euroclear has partnered with a number of Latin American countries to open up their capital markets. 


By Joe Parsons

Peru’s Ministry of Economy and Finance and Euroclear have launched a domestic link that will enable foreign investors to gain access to the country’s government bond market.

A domestic government bond of over $3 billion has been made available to domestic and international investors to help stimulate activity on the link.

The launch of the initiative has been over two years in the making, after the country agreed with Euroclear to develop an international link for its capital markets, and align it with international standards.

“This cooperation with Euroclear now connects our market directly to all parts of the globe, aligning our capital market infrastructure with globally recognised standards,” said Fernando Zavala, minister of economy and finance of Peru.

Euroclear has increased its position as a gateway for foreign investors in South America, and has partnered with a number of Latin American countries to open up their capital markets.

In February, it cooperated with the Chilean Ministry of Finance to align the country’s post-trade processes with international standards, allowing foreign investors easier access to domestic debt markets.

Last year Euroclear agreed a joint venture with Mexico’s stock exchange group, Grupo Bolsa Mexicana de Valores (Grupo BMV), to accelerate and deepen the liquidity of the Mexican mutual funds market.

“Euroclear is proud to add Peru to our already well-developed Latin America market network providing international investors with a secure, efficient and cost-effective way of accessing Peruvian assets,” said Stephan Pouyat, global head of capital markets and fund services, Euroclear.