Named i-link, the connection will allow domestic Peruvian issuers to access the international liquidity pool provided by Euroclear’s investor client base. Investors based in Peru will also be able to trade with international counterparties, thereby promoting Peru as a capital market in Latin America.
The i-link will align Peru’s capital market with international standards, with the benefit of Euroclear’s reputation in the post-trade space.
I-link is also designed to provide domestic and international investors with a way in to Peru’s capital market, which will result in improved efficiency and a reduction of costs.
Alonso Segura Vasi, Peru’s minister of economy and finance, said: “Through Euroclear’s i-link platform we will have access to an extremely large number of financial institutions that make up Euroclear’s core client base, the majority of which are also long-term investors.”
“The development of this i-link will allow us to increase domestic liquidity, lower price volatility and reduce the financial cost of our sovereign bonds, ultimately boosting the development of the Peruvian public debt market.”
He added: “Euroclear’s i-link will permit local investors to diversify the counterparties they deal with while also connecting to a greater number of international investors.”
“This platform will elevate the Peruvian capital market to the recognised standards of other developed international markets. It will also provide both local and international investors a unique and cost-efficient channel through which to access the Peruvian capital market.”
Stephan Pouyat, Euroclear’s global head of capital markets said: “Euroclear is honoured to be a partner in the internationalisation of Peru’s capital markets. This landmark agreement will allow us to bring our established international link solution to Peru to the benefit of the local economy as a whole.”
“Once the international link is in place, it will provide local issuers with an efficient and cost-effective channel through which to access a new reliable source of funding by pairing their demand with international investor liquidity.”
The link is expected to go live before the end of the year.