A partnership between the Mexican Ministry of Finance and Euroclear means that Mexican corporates will be able to issue debts denominated in Mexican peso and targeted towards international investors.
Euroclear will be able to service Mexican corporate debt instruments, called Cebure, from 31 January 2015.
The launch intends to align Mexico’s corporate issuance and asset servicing processes with international standards, and the Mexican ministry of Finance and Euroclear have been working closely to achieve this. The pair have been working together on corporate debt and equities since 1995.
Luis Videgaray Caso, minister of finance and public credit, said: “We are delighted that our partnership with Euroclear has yielded this important milestone for our capital markets. Being able to tap into the liquidity provided by international investors is tremendously important for the continued development of our local industry. And, it should yield tangible benefits such as reducing the cost of borrowing for our local issuers, increasing the liquidity in our local markets and furthering investment in our economy.”
“By making our Cebures bonds ‘Euroclearable’ we have aligned our capital market infrastructure with the globally recognised standards that are synonymous with Euroclear’s robust, resilient and sound risk-management principles.”
Stephan Pouyat, global head of capital markets for Euroclear, added: “We are very pleased and honoured to be part of this watershed moment for the Mexican capital markets.”
“The new regulatory framework, including the new tax treatment rule, enables Euroclear to extend its already well-developed Mexican market offering and provide international investors a simple, efficient and cost-effective way of accessing Cebures. This is the result of the strong partnership we have built up with the Ministry of Finance to align the needs of the Mexican market and those of international investors.”
