Panama gains access to Euroclear Bank for issuances

With access, the country will issue corporate and multilateral and/or supranational debt.

By La Estrella

Corporate debt issuances and those from multilateral and/or supranational organizations registered on the Latin American Stock Exchange, S.A. (Latinex), which meet the requirements, can now be cleared through Euroclear Bank and made available to international investors as of yesterday, Thursday, February 1st, through the agreement signed between Euroclear Bank and Central Latinoamericana de Valores (Latinclear), called iLink (International Link).

This marks a significant milestone in the evolution of the Panamanian capital market and reflects the shared vision between Latinex, Latinclear, and the Ministry of Economy and Finance (MEF), to strengthen Panama’s positioning as an international hub in the securities market, as well as the ongoing collaboration with Euroclear Bank.

Panama has maintained a link with Euroclear Bank to internationalize local debt issuances since 2014, which began with phase 1 for issuances by the Republic of Panama and quasi-governments.

Now, with the opening of phase 2, corporate debt issuances and those from multilateral and/or supranational organizations will be available to international investors, the entity stated in a press release issued this Thursday.

Benefits

Among the benefits of convertibility of securities to Euroclearable ones, three stand out: direct access to international investors, expansion and diversification of the investor base, and increased liquidity and market growth.

Latinex

The Latin American Stock Exchange, S.A. (Latinex), formerly known as the Panama Stock Exchange (BVP), has over 30 years of experience and serves as a meeting platform for investors and companies issuing securities. It is supervised and regulated by the Superintendence of the Securities Market of Panama.

Latinclear

The Central Latinoamericana de Valores, S.A. or Latinclear has over 25 years of experience and specializes in custody, clearing, and settlement services for operations (domestic and international), also providing securities administration services. It is supervised and regulated by the Superintendence of the Securities Market of Panama.

Euroclear Bank

Euroclear Bank is a leading infrastructure in the capital markets and provider of post-trade services. Its services include settlement and custody of national and cross-border securities for bonds, stocks, and investment funds.

Euroclear Bank also offers services such as securities lending and collateral management.