Euroclear Expands Service to Mexico’s Corporate Issuers

Euroclear said that it expects to begin servicing Mexican corporate debt instruments, known as Cebures, as of 31 January 2015.

The cross-border settlement and services group added that the service launch results from close cooperation between the Mexican Ministry of Finance and Euroclear to align Mexico’s corporate issuance and asset servicing process with international standards.

“We are delighted that our partnership with Euroclear has yielded this important milestone for our capital markets,” said Mexico’s minister of finance and public credit, Luis Videgaray Caso. “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.”

Euroclear’s service offering for Cebures will complement the existing link with the Mexican market for government debt and equities that was established in 1995.

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