Automatic Authorization for Closed-End Credit Mutual Funds

Through General Resolution 1055 of February 19, 2025, the Argentine Securities Commission (CNV) regulated the public offering regime with automatic authorization of Closed-end Credit Mutual Funds (FCICC), to continue promoting the development and growth of the capital market.

The main aspects of the Resolution are:

The automatic authorization procedure applies to the issuance of FCICC destined exclusively to qualified investors, and whose maximum nominal amount does not exceed 7,000,000 Units of Purchasing Value (UVAs), or its equivalent in ARS or foreign currency.

All the issuances made by the same participants will be considered to calculate the maximum nominal amount: the managing company, the depositary company, and the originator of the credits under the regime. The accumulation or aggregation will be for 12 months before approving the issuance terms and conditions. It may be reissued within the maximum amount previously mentioned, once all or part of the shares have been fully or partially repaid.

Regarding the reporting regime, FCICC must provide annual and quarterly financial statements, along with reports on capital collections, loan interest payments, and any material deviations from expected financial outcomes.

The prospectus and the FCICC's management by-laws must be submitted before the CNV at least two business days before the dissemination period begins. Although these documents are not subject to the CNV’s review, the automatic authorization regime for public offering does not exempt the FCICC or the participants in the primary placement or during the term of the issuance from complying with the transparency regime.

The managing company must publish through the Reporting System:

a)    the management by-laws and the prospectus,
b)    the corporate resolutions that authorized the issuance and established their terms and conditions,
c)    the credit rating report, if applicable,
d)    the notice of results, on the day of the auction.

The markets must not impose greater requirements for the listing and/or trading of the issuance under the regime.

Failure to pay the corresponding control and supervision fee, or to comply with the minimum requirements established in the prospectus and/or the applicable reporting regime, will result in the prohibition of the managing company to make new issuances under this regime.