Argentina’s National Securities Commission (CNV) has approved the creation of a simplified and guaranteed regime for the issuance of bonds with social impact, by means of General Resolution 934.

This instrument will enable potential issuers to have access to a simplified information regime similar to the current regime for SMEs. The purpose of the new regime is to promote the financing of the socio-productive economy. The regulation will allow intermediate entities, such as those engaged in microfinance, to access the possibility of entering the public offering and obtain resources from the capital market that have as final destination the financing of small enterprises with social impact.

Issues under the new regime must meet two conditions: generate social impact (according to a risk rating agency registered with the CNV) and be guaranteed by a guarantee entity (SGR, banks or guarantee funds registered with the CNV).