The Ministry of Finance issued Decree 817 of 2020, which establishes the special conditions for clarifying the possibilities of issuing securities on the second market of the Colombian Stock Exchange (bvc). With them, it is hoped to generate debt and capital resource opportunities for companies most affected by the economic crisis generated by coronavirus (Covid-19).

In this way it is determined that, for two years, the debt securities issued by Simplified Share Companies (SAS) in the second market will have the possibility to register with the National Register of Securities of Issuers (Rnve).

With this provision, such issues on the Colombian Stock Exchange will have a maximum period of up to five years.

The Ministry of Finance recalls that it is essential to “encourage more companies to access unintermediated financing through the stock market, in order to promote access for those companies that need long-term resources”.

Debt without bank intermediation and with Fosyga guarantee

An important point of the regulation concerns that it will be the National Guarantee Fund (FNG) that guarantees emissions in the public stock market, “in order for investors to take this situation into account when considering the risk to make investment in these issues in the public market”.

Finally, it will be the Government of Colombia that determines the statutory and corporate governance conditions “for the companies referred to in this article to access the stock market”.

The full decree for issuing company bonds can be read here

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