27 August 2009

Goldman Sachs, Celfin to Sell Derivatives in Chile

By Nathan Gill
Aug. 27 (Bloomberg) -- Goldman Sachs Group Inc. and Chilean brokerage and investment bank Celfin Capital SA agreed to develop derivative products for Chilean pension funds, the country’s biggest investors, Celfin said.

Goldman Sachs and Celfin will create and market financial instruments, including cross-currency and interest-rate swaps, for the South American country’s private pension funds known as AFPs, Celfin Chairman Juan Andres Camus said today in a telephone interview.

Chile’s government authorized the funds to trade in derivatives in October as it tries to increase trading volumes in Latin America’s third largest market, according to Celfin. Pension funds had assets of $102 billion under management as of the end of July, according to the pension regulator.

“Today, this market is at zero,” Camus said from his offices in Santiago. “We don’t have a figure of how much this will penetrate, but we think the amounts will be significant.”

Celfin is growing in “all areas of our activity” and may pursue other joint ventures with Goldman Sachs, Camus said. “We’ll see how this relationship develops and it could possibly expand to other activities.”

The company is also interested in opening an office in Colombia, where it already provides brokerage services through its offices in Santiago and Lima, Camus said.