The Ministry of Finance issued Decree 817 of 2020, which establishes special conditions to clarify the possibilities of issuing bonds on the stock market. In particular, in the second market of the Colombian Stock Exchange (bvc). These are expected to generate opportunities for obtaining debt and capital resources for the companies most affected by the economic crisis generated by the coronavirus (Covid-19).
In this way, it is determined that for two years, debt securities issued by Simplified Stock Companies (SAS) in the second market will have the possibility of being registered in the Registro Nacional de Valores de Emisores (Rnve).
With that provision, such issues in the Colombian Stock Exchange will have a maximum term of up to five years.
The Ministry of Finance reminds that it is essential to “encourage more companies to gain access to disintermediated financing through the stock market. This, in order to encourage access to those companies that need long-term resources”.
Issuance of bonds on the stock exchange (Debt) without bank intermediation and with Fosyga guarantee
An important point in the regulations is that it will be the National Guarantee Fund (FNG) that will guarantee issues on the public securities market. They comment that “In order for investors to take this situation into account when considering the risk of investing in these issues in the public market”.
Finally, it will be the Government of Colombia that will determine the statutory and corporate governance conditions. Therefore, “for the companies referred to in this article to have access to the stock market”.