Financing for Infrastructure and Real Economy Projects Promotion

On June 3, 2021, the Argentine Securities and Exchange Commission (the “CNV,” after its acronym in Spanish) issued General Resolution No. 891 (the “Resolution”), by means of which it submitted to public consultation the new regime applicable to Mutual Funds for financing infrastructure and the real economy (the “Funds”).

The Resolution aims to review the “Special Regime for the constitution of Mutual Investment Funds for Productive Projects of Regional Economies and Infrastructure,” established under CNV General Resolution No. 568 of 2010, as incorporated into the 2013 Amended Text without modifications.

With the purpose of broadening the scope of these instruments, making them a financing vehicle for all types of projects related to the development and strengthening of the real economy, the CNV submitted to public consultation the draft of the amendment to the current regime which would be known from now on as the “Special Regime for the Creation of Open-end Mutual Funds for the Financing of Infrastructure and the Real Economy.”

The Resolution mainly sets forth the following regulations on the special regime for the constitution of the Funds:

• at least 75% of eligible assets for the constitution of these Funds must be invested in (i) securities whose sole purpose of financing is development and/or direct or indirect investment in infrastructure, real estate, agricultural, forestry, sustainable, regional economy, entrepreneurial capital and other projects with an impact on the real economy, and (ii) securities whose purpose of financing is not exclusively for the activities mentioned in the preceding point;
• up to 10% of the Fund's assets can be invested in Closed Mutual Funds quotas managed by another Mutual Funds Manager;
• a period of three hundred and sixtyfive calendar days is stipulated to definitively incorporate the eligible Fund’s assets; and
• a forewarning period, which may not exceed 25 business days, is established to request the redemption of quotas, as well as a longer period for paying the redemption, which may not exceed ten business days.

Finally, the Resolution updates regulatory references and establishes adequacy guidelines for the existing Funds at the time of the entry into force of its provisions.