1. Euroclear link with Peru Features, services and benefits 19 July 2017

2. Agenda Expansion in the LATAM region Creating the ‘right’ conditions
Euroclear link with Peru: features, services & benefits

3. Speakers Fatima Mehladi - Product Manager – Global Capital Markets
Fernanda Aspilche Ferro, Product Solutions – Global Capital Markets

4. Euroclear’s foot print in LATAM
Mexico – Feb 2015
First ‘Euroclearable’ Mexican corporate bond (Pemex)
Panama – Apr 2014
New link for government bonds
Peru – July 2017
First ‘Euroclearable’ Peruvian sovereign bond
Brazil – Jan 2011
Link for all Brazilian securities
Chile – 2016 & 2017
Moving from pro-rata to record date taxation
Recognition of ICSD omnibus account set-up
Fully ‘Euroclearable’ sovereign bonds in January and June 2017
Argentina – 2016 & 2017
Enhanced FX services
Euroclear part of structural market changes (e.g. DvP settlement)
Steady flow of new issuances
2011
2014
2015
2016
2017

5. Creating the ‘right’ conditions For the buyers
Settlement & cost efficiency
Omnibus account - Internal settlement with immediate settlement finality
Protection of investor’s rights
Nominee concept recognized by Peru since November 2015
We facilitate investment in Peru and holding of Peruvian sovereign bonds
in a secure & seamless manner
Easy access to primary market
The primary market further opens and ease the access for international dealers
Direct link
EB is the registered ‘Nominee’ holder in the books of CAVALI (no intermediary in the chain)
Tax
Domestic sovereign bonds and financing transactions on those bonds are exempted from tax

6. Euroclear Link with Peru Features and services
Account structure
Eligible securities
Primary market settlement
Secondary market settlement
Money transfer
Asset servicing
Financing

7. Euroclear link with Peru Account structure - omnibus
CAVALI
(Registrar)
CAVALI (Peruvian CSD) is the registrar appointed by the issuer, the Ministry of Economy and Finance of Peru (MEF)*
Euroclear Bank
(Nominee account)
Euroclear Bank is the issuer CSD appointed by the MEF for some of its future sovereign bonds
Euroclear participants and CAVALI will hold the bonds in a regular omnibus account with Euroclear Bank.
CAVALI will be holding the bonds on behalf of its local Peruvian clients
Euroclear Bank participants
(including CAVALI)
* CAVALI will also be the issuing and paying agent for the issuer

8. Euroclear Link with Peru Eligible securities
New Peruvian domestic Sovereign bonds to be issued by MEF via Euroclear Bank can settle in Euroclear Bank and CAVALI
The new bonds will be denominated in Peruvian Sol (PEN)
The new bonds are traded in units in the local market; however, they will be recorded and reported in nominal amount in Euroclear Bank
Existing sovereign bonds will continue to settle in CAVALI

9. Euroclear Link with Peru Primary market settlement
Participate in the primary distribution of new Peruvian sovereign bonds using your Euroclear Bank regular account
The primary distribution of new bonds will take place in Euroclear Bank. The new bonds will be distributed by the issuing agent (CAVALI) to the primary initial purchaser’s Euroclear Bank accounts
Euroclear Bank participants will then be able to purchase the new bonds DvP from the primary dealers, against payment of USD (as per the offering memorandum of the new bond)
Settlement of primary market during the real-time process dated closing date - daylight settlement indicator required !

10. Euroclear Link with Peru Secondary market settlement
DvP Settlement can take place against any of the 50 settlement currencies supported by Euroclear Bank. Settlement could also be free of payment if agreed between the two counterparties
Settlement can take place during both the batch and the real-time processes
Euroclear Bank participants trading with a local counterpart will settle internally in EB against the account of CAVALI (as investor CSD – account 76971)
All Euroclear Bank standard instruction formats and deadlines for internal instructions will apply

11. Euroclear Link with Peru Money Transfer
Cash
Overdrafts are not allowed
How to receive PEN into your Euroclear Bank cash account:
You can do a standard foreign exchange instruction via Euroclear Bank
You can do a direct deal with Euroclear Bank’s treasury desk
You can do a third party Foreign Exchange transaction and transfer the PEN to your Euroclear Bank cash account
You can transfer from another Euroclear Bank cash account via a book transfer
How to transfer PEN out of your Euroclear Bank cash account:
You can do a standard wire transfer via Euroclear Bank
You can transfer to another Euroclear Bank cash account via a book transfer

12. Euroclear Link with Peru Asset Servicing
Income – Standard Eurolear Bank income services in terms of processing and reporting
Corporate actions - Standard corporate action notifications (DACE notices) keep you informed of upcoming corporate actions affecting your Peruvian domestic sovereign bonds held with Euroclear Bank
Tax - Peruvian domestic sovereign bonds held with Euroclear Bank will not be subject to withholding tax

13. Euroclear Link with Peru Financing
Triparty,
lending & borrowing
Newly issued Peruvian domestic sovereign bonds can be used for financing purposes in EB via Euroclear’s Collateral Highway
New Peruvian domestic sovereign bonds will be eligible in our securities lending and borrowing programme

14. Euroclear Link with Peru Benefits
Full Asset Protection
Easy plug-and-play solution using your Euroclear Bank regular account
Access to local and international counterparties via EB
Efficient and cost effective thanks to internal settlement
Multi-currency settlement against any of the 50 settlement currencies eligible in Euroclear Bank
Standard asset servicing
Financing through triparty and lending & borrowing

15. Contact points at Euroclear Bank
Q & A
Contact points at Euroclear Bank
Fernanda Aspilche Ferro –
Fatima Mehladi –

16. Disclaimer
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