The Argentine Securities Exchange Commission favors the creation of new negotiable securities

1.    Securities Certificate (“Certificado de Valores”)

This new security, which must be authorized by the CNV to be publicly offered, is called Certificado de Valores or CEVA and may represent the following:

(a)different kinds of negotiable securities; or

(b)negotiable securities that also represent different kinds of negotiable securities characterized, categorized, systematized or/and adjusted in accordance with criterion indicating their value in the manner or under the guidelines that the CNV may inform from time to time.

The main features of the CEVA are the following:

    * freely transferable;

    * non-endorsable and in registered or certificated form;

    * freely exchangeable against the negotiable securities that the CEVA represents, upon requirement of the holder of the CEVA; and

    * each CEVA must represent a reasonable number (upon the criterion of the CNV) of negotiable securities (a CEVA may exceptionally represent fractions of negotiable securities).

2.    Issuers

The CEVA may be issued by “cajas de valores”, commercial or investment banks and financial institutions, authorized by the Central Bank of the Republic of Argentina, having net assets over an amount of AR$ 30,000,000.

Information duties are only complied with by the CEVA’s issuers.

3.    Negotiable securities represented by the CEVA

Negotiable securities represented by the CEVA must have the following features:

(a)freely transferable, unless otherwise provided for by the terms of the CEVA, and grant equal rights to their holders;

(b)admitted to public offer and listed in any stock market in Argentina, Chile, Brazil, Uruguay or Paraguay, or in any market with which the CNV has a Memorandum of Understanding, or not admitted to public offer nor listed provided that the CNV authorizes it); and

(c)deposited with (i) the issuer of the CEVA; (ii) an authorized securities depositary; or (iii) the main depositary of the country of issuance of the negotiable securities.

The above mentioned Resolution describes in detail the information required for the admission petition to the public offer regime as well as the rules related to deposit of the underlying negotiable securities and the applicable information regime.