At ARG Capital we make it easier for companies to access the capital market, whether it’s by means of the issuance of private debt or through the process of public offering, and that way in order to finance their businesses and make them grow.
They are very flexible instruments in terms of issuance conditions, being able to structure themselves according to the needs of the issuing business, regardless if it’s coin, term, payment scheme, or rate of interests and guarantees format.
The instruments currently available under the regime of public offering are:
Negotiable Obligations (“ON”)
They are fixed rate securities emitted by private companies and entities to obtain funds with which they can develop their activities. ONs are negotiated in capital markets and are equivalent to public equities, what differs is that they are destined to productive financing of the private sector.
ONs generally have a term longer than two years and their conditions are established in the Prospectus Emission.
Deferred Payment Checks (Approved or Endorsed)
It is a check emitted by a company that will be cashed at a later date within the lapse of 360 days. When a company pays its suppliers with deferred payment checks, the check could be cashed before the scheduled date. Due to this, it is possible to sell them in the capital market with a discount rate. Two types of DPC exist:
Sponsored: the institutions that validate DPC request the price of the DPCs emitted for third parties, so they can be traded in a capital market.
Endorsed: CPDs that will be traded are previously approved by a Mutual Guarantee Company or another financial institution to guarantee that it is cashed on the date of expiration.
A Promissory Note is a negotiable security in the capital market, similar to a CPD; however, its payment period can reach 3 years and must be endorsed by a Mutual Guarantee Company. This instrument allows financing of operations with amounts below the Negotiable Obligations without the need to obtain a previous authorization on behalf of the National Securities Committee.
Short Term Securities (STS)
They are negotiable debt securities with a maximum duration of 365 days. STS can only be acquired through Qualified Investors, qualified by the CNV (as Mutual Investment Funds). In order to emit them, it is necessary to build a Global Program and their repayment is determined by the instrument’s expiration, settling capital and interests in a single payment.