Modifications to the Rules on the Issuance of Negotiable Obligations

On May 24, 2018, the Argentine Securities and Exchange Commission (“CNV”, after its acronym in Spanish) issued Resolution No. 737, amending certain sections of the CNV Rules regarding negotiable obligations, in line with the modifications introduced by the Productive Financing Law No. 27,440, which was passed by Congress on May 9, 2018.

The new Resolution has eliminated the requirement to publish the notice of issuance in the Official Gazette and to register it with the Public Registry of the corresponding jurisdiction, in the case of publicly offered negotiable obligations (pursuant to the Productive Financing Law, such requirements remain in place for those negotiable obligations that are not publicly offered).

Instead, to issue publicly offered negotiable obligations, the issuing company must publish a notice in the online information system of the CNV (the “AIF” or Autopista de la Información Financiera), under the caption “Aviso Artículo 10 Ley N° 23.576 y modif.”, containing the same information as required under the previous regime (in general terms, dates of the shareholders’ and board of directors/managers’ meetings deciding to issue the negotiable obligations, information about the issuing company and the negotiable obligations being issued, as required by law).

As in other cases, the idea of the new regulations is to streamline the issuance and utilization of negotiable obligations in the stock market.