Brussels/Santiago, 2 July 2021 – Euroclear Bank, the Brussels based international central securities depository (ICSD) and the Ministry of Finance of Chile are pleased to announce that Chilean corporate debt can be accessed through the market’s Euroclearable link.
This milestone is the result of a close collaboration between the Ministry of Finance and Euroclear over the last few years, and has been made possible due to changes in the legal framework and tax treatment of these securities, making them compatible with international standards.
Euroclearability of domestic corporate debt will allow foreign investors to access these securities in a more efficient and standardised way and give, Chilean local corporate issuers access to a wider investor base and deeper liquidity pools, which ultimately can realise a reduction in the overall volatility of borrowing costs.
Chile’s Minister of Finance, Rodrigo Cerda Norambuena said: “We are convinced that this important step will allow Chilean corporates to diversify their investor base, thereby improving market access and borrowing terms, as has been the case with local currency Chilean government debt.”
Stephan Pouyat, Global Head of Capital Markets and Funds Services Euroclear added: “We are delighted with our progress in Chile, following the successful launch in 2017 of the Euroclearable link enabling international investors to access the government bond market. Today’s achievement will enable corporate issuers to benefit from our robust ecosystem. The latest enhancement will provide the market with a new level of capability in the corporate sector, which could include ESG issuances amongst others. ESG issuance is expected to become a core pillar as illustrated by Chile’s Ministry of Finance issuing its first local Social Bond last year which captured record foreign participation.”