The Argentine Securities and Exchange Commission proposed a new regulation on project bonds that would allow special purpose companies to issue bonds to finance public or private sector infrastructure projects. Under the proposed regulation, project bonds can only be purchased by qualified investors and must be repaid from project revenues. The bonds would finance projects within Argentina at any stage of development and issuers would need to file regular reports on project construction, costs, and financing sources.

1. March 19, 2018
Argentine Securities and Exchange Commission Proposes New Regulation
on Project Bonds
The Comisión Nacional de Valores (Argentine Securities and Exchange Commission or “CNV”)
issued Resolution No. 726/2018 (dated March 19, 2018), proposing a ground-breaking regulation
on project bonds. Interested parties may submit comments until April 9.
The proposed regulation contemplates the following:
 Scope: Project bonds shall be issued in the form of obligaciones negociables, to finance
public or private sector projects.
 Issuer: A special purpose company with sufficient organizational structure according to the
project. It may also hire project management services.
 Eligible investors: Project bonds can only be subscribed or purchased by qualified investors.
 Eligible Projects: These projects shall be carried out within Argentina. The project may be at
any stage (i.e. design, development, construction or even debt refinancing). The issuer may
issue additional project bonds only if the proceeds are used to fund the original project (or
connected thereto). New projects shall be funded through a different SPV.
 Flow of Funds: The bonds shall be repaid with project revenues owned by the issuer.
 Marketing Materials: Public offering of project bonds is subject to registration with the CNV.
The issuer shall file a prospectus with specific information on the project, feasibility studies,
and description of assigned receivables.
 Information: The issuer shall file quarterly reports on the construction and operation of the
project, including technical reports, cost analysis and investment plan.
 Other sources of financing: The prospectus shall detail any additional sources of financing,
including equity contributions.
 Conflicts of Interest: The prospectus shall include a disclosure of any conflicts of interest
regarding the issuer, their management and affiliates and the measures to manage such
conflicts of interest.