Update of categories for qualified investors

The Argentine Securities Exchange Commission (Comisión Nacional de Valores) (the “CNV”), issued General Resolution No. 578 dated September 28, 2010 (the “Resolution”) which updated the minimum net asset required for the qualified investors to acquire securities which fall within the scope of the legal regime set by Decrees No. 1,087/93 and 319/08 (the “Securities”) and short term debt securities “Valores de Deuda de Corto Plazo” (“VCPs”).

The Resolution amends Article 25, Section VI.7, Chapter VI of the CNV’s regulations, modifying certain requirements for qualified investors to acquire Securities, as follows: 

(i) the minimum net worth for persons domiciled in Argentina was updated from $ 350,000 to $ 700,000; 

(ii) the minimum net worth for partnerships (sociedades de personas) was updated from $ 750,000 to $ 1,500,000; and 

(iii) eliminating the reference to Pension Funds (Administradoras de Fondos de Jubilaciones y Pensiones), replacing it with the National Administration of Social Security (“ANSES”).

Likewise, the Resolution also amends Article 101, Section VI.7, Chapter VI of the CNV’s regulations modifying certain requirements for qualified investors to acquire VCPs, as follows: 

(i) the minimum net worth for individuals domiciled in Argentina was updated from $ 350,000 to $ 700,000; 

(ii) the minimum net worth for partnerships (sociedades de personas) was updated from $ 750,000 to $ 1,500,000; and 

(iii) eliminating the reference to Pension Funds (Administradoras de Fondos de Jubilaciones y Pensiones), replacing it with the ANSES.

As a result of these modifications, the qualified investors that are allowed to acquire Securities and VCPs are: 

(a) the Federal Government, Provinces and Municipalities, as well as their self-regulated entities “Entidades Autárquicas”, government-owned banks and financial institutions, state-owned companies and public corporations; 

(b) limited liability companies and corporations; 

(c) cooperatives, mutual companies, Healthcare companies, non profit associations, foundations and trade unions; 

(d) brokers and OTC dealers; 

(e) investments funds; 

(f) individuals and companies resident in Argentina with a net worth of more than $ 700,000 and $ 1,500,000, respectively,

(g) companies and individuals who reside outside Argentina; and 

(h) ANSES.