The National Securities Commission (CNV) advances in the creation of a new regime for public offering of financial trusts with automatic authorization. The objective is to enhance the issuance process of this type of instruments with particular focus on companies that are launching into the market for the first time of capitals.
Through General Resolution No. 1031, which will be released in the next few hours, the CNV calls on public consultation to regulate the proposed new regime with the purpose of “accelerating the process of issuing securities in dynamic markets where financing opportunities can emerge and change rapidly,” the agency said in a statement.
Financial trusts are an investment and financing instrument, in which a trustee receives assets from the trustor (the organization that is financed) with the objective of managing them and generating an economic benefit for investors, who obtain a return generated by the underlying assets. of the trust. These instruments are usually structured as vehicles to issue negotiable securities, which are placed in the capital market.
“This type of instrument is widely used by companies to obtain liquidity, as an alternative financing mechanism and to improve the credit rating of those seeking this liquidity,” Adcap explained.
Robert Silvapresident of the CNV, highlighted about the proposed new regime: “We continue working on the deregulation promoted by the National Government. That is why we present simplified regimes applicable to the different financial instruments for those companies that are beginning their participation in the capital market.”
“We want all companies that intend to issue amounts that are not too high to have easy access and transparent,” added Silva. Finally, he stated: “Our objective is to promote the development of the capital market in Argentina.”
Financial trusts: what will the new CNV regime be like?
On the one hand, the initiative of the National Securities Commission establishes an automatic authorization regime for low-impact public offerings, that allows issuing fiduciary securities for an amount of up to one million UVA (today equivalent to $1,260 million) without the requirement to present prospectuses and other documents or have prior authorization from the CNV. In any case, “the fiduciaries must have available the documentation that justifies the placement efforts to enjoy the tax benefits,” the agency clarified.
On the other hand, creates a medium impact regime with a maximum amount of seven million UVA ($8.82 billion). “In this case, unlike the one mentioned in the previous paragraph, the preparation of a prospectus and its publication in the Financial Information Highway, the presentation of annual financial statements and the publication of control and review reports, among other information, will be required. to be required. This regime will be substantially simpler in terms of its requirements established for the general regime,” explained the CNV. In both regimes, primary placement and secondary negotiation must be directed to qualified investors.
From the control body, they highlighted that the new regulations aim to encourage access to the capital market by reducing entry barriers so that trustors can establish financial trusts in less time. “Notwithstanding the deregulation contained in the project and the mandatory warnings that issuers must include, the CNV confirms that the powers provided for in Law No. 26,831 and its modifications regarding the supervision and protection of investors are safe,” the official statement emphasized.
Issuances of financial trusts rebound
A report of Adcap he stressed that In October, 12 financial trusts were issued, for a total amount that exceeded $100,000 million. These issues recorded an average annual nominal rate (ARR) of 48% and an average duration of 5 months.
“We observed a bullish trend in the amount of emissions from these instruments, driven by the continued decrease in rate of financing, which we estimate will stabilize around 42% TNA by November. We also highlight the growth of these instruments in the SME segment,” highlighted the Adcap report.
Specifically, Emissions increased more than 1,000% year-on-year in pesos and they increased 96% compared to September 2024.
“The growth in consumption and the drop in rates are encouraging the origination of new portfolios for financial trusts. This is a key moment to capitalize on these trends and begin working on the issuance process,” said Mateo Lacroze, Capital Manager. Markets of Adcap Grupo Financiero.
“We highlight the recent measures of the CNV, such as the reduction of tariffs applicable to financial trusts and the relaxation of the requirements for issuing these instruments. These initiatives aim to expand opportunities for companies and enhance access to financing,” he concluded. the report.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
