12 Feb 25 New Simplified Regime for Mortgage-Backed Financial Trusts

By Agustín L. Cerolini, Martín Chindamo, Valentina Circolone and Tomás Mingrone.

By means of General Resolution No. 1,053 (hereinafter, the ‘Resolution’), the Argentine Exchange Commission (hereinafter, the ‘CNV’) establishes the creation of a special public offering regime for mortgage-backed financial trusts, in line with the provisions of Decree No. 1017/2024.

This regime is intended for vehicles whose underlying assets are mortgages, mortgage bills, mortgage loans or similar instruments and aims to boost the mortgage credit market and make it sustainable over time.

Along these lines, the Resolution provides for the possibility of reducing the dissemination period to one (1) day when the offer of negotiable securities is addressed exclusively to qualified investors, as opposed to the three (3) days required by the general regime.

As a novelty, this new regime allows the reopening of the placement period of trust securities already authorised for a period of up to two (2) years from the original placement or until the maximum authorised amount is reached.

Another advantage is the ability to issue additional trust securities with automatic public offering approval. In other words, the trust may issue new securities more efficiently and without the need for additional procedures, as long as it remains within the authorized amount.

In summary, the Resolution seeks to promote the creation of agile mechanisms to facilitate and boost the securitisation of mortgage rights and their placement in the capital market.