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Clearstream, the international central securities depository (ICSD) within Deutsche Boerse Group, has accepted the Peruvian Nuevo Sol (PEN) as fully eligible currency for settlement and the Zambian Kwacha as a new denomination currency. Both measures took place on Monday the 19th November.
This move comes in response to growing demand by investment banks and issuers looking for exposure to issue Eurobonds denominated in PEN. The acceptance of the Peruvian Nuevo Sol as a full settlement currency within Clearstream allows issuers interested in issuing Eurobonds denominated in and settling against PEN to clear and settle their assets with the Luxembourg based ICSD. Three other South American currencies are already eligible for settlement in Clearstream, the Argentine, the Mexican and the Uruguayo peso.
The Peruvian Nuevo Sol is currently not a Bridge eligible currency. The Bridge is an electronic communications link which facilitates the efficient settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank.
The Zambian Kwacha has been admitted admitted by Clearstream as a denomination currency, i.e. only for the denomination of a bond issue. It will not be a settlement currency meaning that Clearstream’s customers can issue securities in this currency but they cannot settle against it. With the new additions, 42 currencies are eligible for settlement in Clearstream and 52 other currencies are eligible as denomination currencies.
