Euroclear will extend its cross-border settlement services at the end of January to Mexican corporate debt instruments known as cebures, or “bourse certificates.” This will enable Mexican companies to issue peso-denominated debt specifically targeted to international investors.
Luis Videgaray Caso, Mexico’s minister of Finance and Public Credit, says: “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.”
Videgaray says that by making cebures clearable on Euroclear, “we have aligned our capital market infrastructure with the globally recognized standards.” Euroclear says the new service will complement its existing link with the Mexican market for government debt and equities.
Manuel Sánchez, deputy governor of the Bank of Mexico, told a recent conference that the local debt market has become attractive to foreign investors. Foreign holdings of local-currency government bonds account for about 37% of total domestic public debt outstanding, he says.