Clearstream opens new link to Serbian capital market
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Clearstream opens new link to Serbian capital market 04 October 2021Serbia Reporter: Maddie Saghir
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Clearstream, the international central securities depository (ICSD) of Deutsche Boerse Group, has connected the Serbian capital market to its global network.
Raiffeisen Bank International will act as local custodian and operator of Clearstream’s account at the Serbian central securities depository (CSD).
Clearstream highlights that it is the first ICSD to offer international investors seamless access to the Serbian capital market by enabling the settlement of Serbian government bonds denominated in Serbian Dinar (RSD).
According to Clearstream, this step aims to attract cross-border investments and improve liquidity in the domestic capital market.
Meanwhile, Clearstream customers will benefit from an omnibus account structure, which increases operational efficiency, and its suite of ICSD services, including offshore (internal) settlement to other Clearstream Banking clients without the need to revisit the domestic market.
The linkage comes following the recent inclusion of Serbia’s dinar-denominated bonds in a series of major local-currency emerging markets indices, such as J.P. Morgan’s Government Bond Index-Emerging Markets and their Government Bond Index-Aggregate.
This step triggered a significant increase in turnover on the secondary market as well as an arrival of new buyers of related bonds and foreign investment funds. The inclusion pays testament to the strengthening of the domestic macroeconomic environment in Serbia and years-long efforts to develop the local financial market.
Jan Willems, head of global markets at Clearstream, comments: “We look forward to adding Serbia to our global network, offering our clients access to the domestic capital markets together with excellent local partners. This cross-border link creates various new investment and financing opportunities for the domestic market, underpinning our commitment to connect capital markets all over the world.”
Harald Kreuzmair, division head global investor services within Raiffeisen Bank International, comments: “We at Raiffeisen Bank International, the bank for Central and Eastern Europe, are especially pleased that Clearstream has chosen us and Raiffeisen Serbia as their local partner. This comes in light of Serbia already being one of our focus countries and is evidenced by our intent to further grow our Serbian operations.”
The Republic of Serbia’s Ministry of Finance welcomed Clearstream in opening its new link to the Serbian capital market.
It expects this step to create strong links with global depository centres to introduce advanced services for market participants, as well as to facilitate the access for international investors to the Serbian capital market while strengthening bridges between local issuers and international investors.
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