January 23, 2017 / 12:02 PM / 3 years ago

Chilean peso debt to be Euroclearable from Feb 1

LONDON, Jan 23 (Reuters) - Chile’s peso-denominated bonds will become eligible for processing though post-trade services provider Euroclear from Feb 1, improving foreign investors’ access to local markets, a statement said on Monday.

“For the first time, Republic of Chile government bonds, denominated and payable in pesos have simultaneously been made available to domestic and international investors, in accordance with the financial integration agenda promoted by the Chilean government,” the statement, from Euroclear and Chile’s finance ministry, said.

Belgium-based Euroclear specializes in the settlement and safe-keeping of domestic and cross-border securities for bonds, equities and derivatives, making it easier for international investors to trade.

Access to an international settlement system usually brings more foreign capital to a market, often lowering bond yields, as was the case in Russia, where rouble debt became “Euroclearable” in 2013.

Chile’s finance minister Rodrigo Valdes said in the statement that the step would bring more investment, reduce borrowing costs and make local bond markets more liquid.

The Euroclear group settled the equivalent of 675 trillion euros ($725 trillion) in securities transactions in 2015, the statement added.

$1 = 0.9309 euros Reporting by Sujata Rao; editing by John Stonestreet

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