on Tuesday participated in the launch of Peru’s first Exchange-Traded Fund (ETF) for sovereign bonds, Peru Soberano Van Eck El Dorado ID ETF, structured and designed for the country under the
The ETF placement attracted various investors, reaching S/ 100.5 million (US$27.27 million) upon its debut in the capital market.
During the launch event, the Cabinet member explained that this financial instrument enables diversification and investment in a basket of sovereign bonds issued at a fixed rate and in local currency.
This ETF provides investors with access to a set of sovereign bonds issued by the Republic of Peru through a single instrument, with an initial value of S/100 (US$27) per participation unit. It is listed on the Lima Stock Exchange and supervised by the Superintendence of the Securities Market (SMV).
With this step, Peru becomes the third country in the region to implement an ETF, following Colombia and Brazil, which have adopted the World Bank's Issuer Driven ETF Program as well.
The World Bank Program aims to strengthen the local currency bond market and diversify the investor base.
In his remarks,
Minister Salardi also highlighted that the implementation of the ETF is the result of joint efforts between the Ministry of Economy and Finance (MEF) and the World Bank, involving the design and structuring of the instrument, as well as the selection of the index provider and the ETF Manager responsible for its implementation and administration.
This initiative seeks to expand the investor base in the public debt market.
The ETF launch is part of various actions undertaken by the Ministry of Economy and Finance to continue strengthening the public debt market, in line with its Comprehensive Asset and Liability Management Strategy.