Euroclear and Peru in landmark agreement to develop international link
Brussels and Lima, 12 February 2015 – Euroclear, the Brussels based international central securities depository, and Peru’s Ministry of Economy and Finance have signed a memorandum of understanding committing to cooperate in the development of a new ‘international link’ for Peru. Once implemented, the international link (i-link) will allow domestic Peruvian issuers to efficiently tap into the international liquidity pool provided by Euroclear’s global investor client base. The agreement also allows Peruvian investors to trade with international counterparties, thus enhancing Peru’s reputation as a leading capital market within Latin America.
Euroclear’s i-link will align Peru’s capital market with established international standards while bearing the hallmark of a resilient and robust post-trade infrastructure. The planned development will provide domestic and international investors a single channel to access Peru’s capital market which will result in improved efficiency and a reduction in associated costs.Euroclear’s i-link with Peru is expected to go live before the end of 2015.
Alonso Segura Vasi , the Minister of Economy and Finance of Peru, stated: “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.”
Minister Alonso Segura Vasi continued: “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, Global Head of Capital Markets for Euroclear, added: “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.”
Note to editors
Euroclear is one of the world’s largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and mutual fund transactions with offices in 15 countries across the globe and links to 46 international markets.
Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise which includes over 100 central banks and supranationals.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The group settles the equivalent of $682 trillion(€634 trillion) in securities transactions annually representing 182 million domestic and cross-border transactions. The group holds $900 billion (€833 billion) in average daily collateral outstandings, and over $28 trillion (€26 trillion) in assets for clients.
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