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Conahorro, the keys to access for small savers to the capital market

Conahorro, the keys to access for small savers to the capital market

There is no doubt that the company Conaprole It is part of the identity of the Uruguay. Based on that “connection” and as an original form of financing. which dates back 15 years the cooperative, launched again With savings, which allows small savers to invest in the company. The next launch will be on June 14 with a minimum investment of $1,000.

At the moment, Conaprole It brings together some 2,000 small and medium producers, being the largest private company in the country. Uruguay and the largest dairy exporter in Latin America. “The mechanism Withsavings It was launched with its first broadcast in September 2009, so we are talking about 15 years ago,” he explained. José Luis Rial, financial manager of the cooperative, Ambit.

According to Rial, the program has two fundamental reasons, one is to capture financing for the company, although he does not describe it as the most relevant. “The most important one, which led to Conaprole to embark on this, was the way the cooperative sees itself in Uruguay”, he assured.

The Uruguayan company

Conaprole sees itself as the company of all Uruguayans, the one that everyone values ​​for its products such as yogurt, ice cream, milk, etc. But how many knew Conaprole as a company? How many could value the Uruguayan dairy company? “The way to do it is for Uruguayans to put money into Conaprole”, Rial responded.

“From the moment you put money into a company you start to look at it differently, because one thing is to buy the product and another thing is to see if your money is backed, if it complies, etc. You become more sensitive to the news, to publications, to things that happen with the company,” she explained. Taking this into account, Rial assured that the cooperative set the goal of positioning itself as “the company of all Uruguayans.”

To highlight the importance of the mechanism that is presented to the market every three months, the financial manager assured that “these issues in the capital market are the main source of financing for the cooperative.” In that sense, he commented that they have lines with local banks, with foreign banks and even with international organizations.

Withsavings It was structured to reach the greatest number of people. It is enough to have a minimum of US$ 1,000 to acquire a title. “I wish everyone who wanted could enter. The issue is that we have a distribution problem,” said the manager. “Currently the vast majority of savers are clients of Banco de la República, since it gave us a tool where you can subscribe directly online,” he specified.

In this way, being a client of Republic Bank and having a Savings Bank in dollars, savers have to open a savings account Custody of titles. Thus, the securities purchased by the bank are held in custody and shown to you through a specific account for that purpose. With that you could enter Ebrou and in the subscription period, investors enter and define how much they want to buy. In turn, they can go to the same page if they want to sell it.

“With private banks we have had little success, they are more focused on selling their own products than on distributing products from other companies,” he contextualized.

Avant-garde in the market

The program is presented as an innovative way to invest short-term funds and is an option that arouses the interest of small savers. The Group’s financial manager Conaprole highlighted that “Consavings” It is practically a unique case in the world, which was even the subject of study in the graduate school of business management at the University of Navarra, IESE Business School. “In each broadcast Conaprole “privileges the number of people over the amount invested, so that on average the placement of each saver is US$15,000,” Rial noted.

In that sense, he explained that in the criteria for awarding Withsavings The number of people is privileged more than the amount of capital and the profitability varies depending on the situation of interest rates at the time of each issue.

“Before it was lower, now it is higher because the rates are higher. The rates are market-based and are defined each time we present the data to the Central bank. Surely for the next call in June it will be around 4.8% annually. The previous one in March was 4.5%, paid every 6 months in two halves,” José Luis Rial told Ámbito.

On the other hand, the manager highlighted that the most important attribute of Withsavings is the theme of the liquidity. “Although it is a title that we are issuing for seven years, savers have the possibility on each interest payment date to request that the money be returned,” he points out. “Conaprole “It always pays the interest up to that point, plus the capital, that is, Conahorro always quotes at 100%,” he added.

“For us, success is that more and more people buy With savings. It is a success factor, more than money, because it is the same in all these years. There have been quarters in which we do not need money, but we still go out because it is important to be in the market,” concluded the financial manager of Conaprole.

Source: Ambito

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