In its quest to boost the local capital market, the Central Bank (BCRA) determined that corporate Negotiable Obligations (ON) that meet certain technical characteristics may be used by banks as collateral to expand their stock of active passes. The measure, the monetary authority itself reported in a statement, Its objective is “to incentivize the local capital market, giving the ONs in pesos more liquidity issued by companies. “
The rule was agreed this Thursday by the Board of the entity after its usual weekly meeting. E includes linked dollar-adjusted NOs. In this way, the BCRA argued that it will allow it “to provide more liquidity to an instrument that companies use to finance themselves.”
As reported by the entity chaired by Miguel Pesce, the listings with the assets eligible to arrange transfer operations will be published on the BCRA website. For the preparation of said list, the monetary authority will follow a series of guidelines. Between them, established that the minimum amount of emissions must be $ 500 million, considering the total amount issued by the company for each of the species. The ON they must be valid and issued until the previous month.
The BCRA also revealed that ON will be acceptable with “optimal” and “modest” interest coverage according to risk rating agencies registered and authorized by the National Securities Commission (CNV). In addition, the issuer of the ON must be in situation 1 in most of the entities or in the entity with the highest amount of debt taken.
Another of the points that the BCRA will consider for the preparation of the list will be the minimum rating rating, which must be AA + reported by the CNV.
By last, The BCRA clarified that NOs issued by financial entities, which are guaranteed by themselves or by any other entity with which they have close economic ties, will not be accepted as collateral..