Small and Medium-Sized Enterprises May Now Issue Notes Under Global Programs

On December 1, 2023, the Argentine Securities Commission (CNV) issued General Resolution 986, incorporating and implementing global programs for small and medium-sized enterprises (PyMEs) to issue notes included in the PyME CNV and PyME CNV Garantizada special regimes.

The purpose of the Resolution is to promote access to the capital market for PyMEs and expedite the public offering authorization process.

Given the characteristics of the Regimes, and the need to simplify certain regulatory requirements applicable to note issuers, the CNV incorporated specific provisions to regulate the creation of global notes programs for issuers under the Regimes. These, at the same time, allow issuing series and/or classes of notes under the same global program.

Under the global notes programs, it may be possible to issue SVS+ notes, pursuant to the Guidelines for the Issuance of Thematic Securities in Argentina.

The main features of the Global Programs include:

1. The possibility of denominating the issuance in one or more currencies, in Units of Acquisition Value (UVAs), adjustable according to the Reference Stabilization Coefficient (CER), in Housing Units Value (UVIs), or according to the construction cost index (CCI).
2. The minimum subscription amount for issuance is updated based on UVAs.
3. The establishment of the minimum information and documentation that must be included to request the authorization of public offering of the global notes program under the Regimes.
4. The global notes programs deadline will be a maximum of five years as from their approval.
5. The offering period must be at least three business days. If the issuance is intended for qualified investors, the minimum offering period may be reduced to two business days.

Finally, the CNV approved the guidelines for the Simplified Global Program Prospectus for PyME CNV and PyME CNV Garantizada special regimes, and the Simplified Prospectus Supplement for issuing classes or series of notes under the Global Programs for PyME CNV and PyME CNV Garantizada special regimes.