Euroclear Bank will launch in June settlement, custody and related services for cross-border Chilean domestic debt transactions.
Simultaneously, Depósito Central de Valores (DCV), the Chilean Central Securities Depository (CSD), will offer similar services involving foreign securities transactions for its clients through Euroclear Bank. A bilateral transaction-processing link between DCV and Euroclear Bank is nearing completion. At the same time, the Chilean peso will become one of 54 settlement currencies in Euroclear Bank.
Euroclear Bank will be the first and only international CSD to link with DCV and offer services for Chilean securities, which will be provided to Euroclear Bank clients located in more than 90 countries. The link with DCV will allow Euroclear Bank clients to settle transactions in Chilean government bonds with local Chilean financial institutions that have accounts in the Chilean CSD. All Euroclear Bank clients, except those domiciled in Chile, may deposit these Chilean securities for safekeeping with Euroclear Bank. Chile will be the fourth market in Latin America for which Euroclear Bank offers services for cross-border domestic securities transactions, following Argentina, Brazil and Mexico.
Fernando Yáñez, general manager of Depósito Central de Valores, commented: “We welcome the new relationship between Euroclear Bank and Depósito Central de Valores. The proven safety and reliability of Euroclear Bank’s links with depositories and its relationships with sophisticated investors around the world will help to further Chile’s objective of attracting more international investors to invest in Chilean government debt. Moreover, DCV’s link with Euroclear Bank will ease the processing of foreign securities transactions for our Chilean investors and provide them with access to a wide range of securities and counterparties worldwide.”
Frédéric Hannequart, chairman of Euroclear Bank, said: “Euroclear Bank’s expanded portfolio of services for Latin American domestic securities creates new opportunities for investors worldwide. Our long-standing relationship with Chilean issuers of Eurobonds and other international securities provides a natural and logical extension for us to process cross-border transactions involving Chilean domestic debt securities. As client demands and the capital markets continue to evolve, Euroclear Bank is committed to easing access to the types of securities in which our clients want to do business with both local and international counterparties.”
Upon launch of the Chilean CSD link, Euroclear Bank will have links with CSDs in 44 major countries.
In December 2010, the total Chilean government debt outstanding was valued at EUR 21 billion. In June 2010, the total outstanding of Chilean international debt reached EUR 15 billion, of which EUR 470 million were Eurobonds.
