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10.2. Financing Regimes

There are no general financing regimes. However, as provided in the Negotiable Obligations Law, corporate bonds qualifying for public offering in Argentina as obligacionesnegociables receive a favorable tax treatment. Non-resident holders of debt securities are exempt from withholding tax on interest payments provided the following conditions are met:

  • The form of the bonds must conform to the Argentine requirements for “obligacionesnegociables.”
  • Authorization from the Argentine Securities Commission (Comisión Nacional de Valores, “CNV”) to publicly offer corporate bonds. This agency must also approve the placement memorandum and the financial plan required from the issuer. Please note that this requirement also applies even if the securities are offered solely in foreign markets.
  • Effective placement of the bonds through an offering (either in Argentina or abroad) which complies with the requirements of a public offering under Argentine law.
  • The proceeds from the offering are to be used to (i) invest in fixed assets in Argentina, (ii) provide working capital in Argentina, (iii) refinance existing indebtedness, or (iv) make capital contributions to subsidiaries or affiliates that will use the funds for any of the foregoing purposes; and  
  • After the offering, the issuer must evidence to the CNV the use of proceeds in accordance with the foregoing requirements. Evidence must be kept in Argentina.

A “public offering” of securities is defined by statute as “any invitation to the public in general or to specific sectors or groups in particular to enter into any legal act involving securities either made by an issuer or by individuals, firms or companies either exclusively or non-exclusively engaged in the trading thereof by means of personal offerings, newspaper articles, radio or television broadcasts, films, posters, programs, printed communications or any other means of public communications.”