Four months ago, Argentina’s Comisión Nacional de Valores (CNV, the National Securities Commision), announced a new instrument that allows small and medium enterprises (SMEs) to obtain financing with help from guarantee institutions. Since late August, four companies have issued debentures under this scheme, raising a total ARS 21 million and 800,000 dollars.
In mid-June, Argentina’s CNV presented a new financing instrument for SMEs: ON PyME CNV Garantizada (which roughly translates to “Guaranteed CNV SME Debenture”), which allows small and medium enterprises to obtain mid to long term financing at competitive rates.
The characteristics of this instrument were previously presented in the following article (in spanish) from our weekly newsletter. In summary, these new structure allows SMEs to issue debentures under a simplified process with collateral being provided by guarantee institutions.
As of October 20, four companies have issued debentures under this system for a total ARS 21 million and USD 800 thousand. These securities have maturities ranging from one to four years. ARS denominated debentures pay variable rates while USD denominated ones have fixed rates. The following chart summarizes the characteristics of these issuances:
Issuing companies are diverse in terms of both location and activity:
Villanueva e Hijos S.A.
is a real estate developer located in the province of Jujuy.
RDA Renting S.A.
, based on the city of Buenos Aires, offers renting
and management of corporate vehicles.
grows cereals and oilseeds in the province of Chaco.
Agroempresa Colón S.A
., which has already issued two series of this instrument, sells
supplies (such as fertilizers, herbicides, etc) for agricultural
producers in the province of Cordoba. It also produces and
commercializes cereals and oilseeds for feed uses, as well as repairs
agricultural machinery and tools.
Table N° 2 shows SMEs that are listed as “in process” in the CNV’s website
under the “ON PyME CNV Garantizadas” header. Heterogeneity is also
the norm among these companies, with activities that range from IT services
to clothing manufacture.