New Simplified Procedure for Frequent Issuers

On June 26, 2018 the Argentine Securities and Exchange Commission (“CNV” after its acronym in Spanish) published General Resolution No. 746/2018 (“Resolution No. 746”), which created a simplified procedure for the issuance of negotiable instruments by Frequent Issuers (“EF” after the acronym in Spanish) in order for them to make the best of the opportunities and advantages that arise in the most favorable moments of the market.

Resolution No. 746 takes into account some of the suggestions received during the “Participative Rule-Making” procedure (Executive Order No. 1172/2003) established by General Resolution No. 721. Said suggestions consist mainly of: (i) the extension from 12 to 24 months of the term in which two offerings are to be made; (ii) the fact that the decision to request the registry as EF must be taken by the governing body instead of the shareholders’ meeting; and (iii) the possibility of reducing the offering period and the allocation term for placements under the EF regime to one day.

As a result, the entities that have put two issuances of stock or negotiable instruments under the initial public offering regulated by the CNV in the two previous years will be allowed to request to be registered as EF.

Moreover, the entity must keep the information requested in the Periodic Information Regime complete and up-to-date in the online information system (“AIF” after its acronym in Spanish), among others. Furthermore, the entity must not have any administrative sanctions -such as pending fines or other more severe ones imposed by the CNV in the last two years- ongoing debt restructuring or bankruptcy procedures, final criminal sentences, or outstanding fees and/or taxes with the CNV.

These novelties were included in Chapters V and IV of Title II of the CNV Rules (N.T. 2013 as amended), which modified everything related to the authorization system of public offering and the Prospectus model, and incorporated a model of Pricing Supplement.

For more information about General Resolution No. 721, please see “Frequent Issuers”.