At Vega, Guerrero & Asociados, firm in our commitment to business development, we note with enthusiasm the recent draft published on September 9, 2024 by the National Commission for Regulatory Improvement (CONAMER). This document, called “Disposiciones de Carácter General Aplicables a las Emisoras Simplificadas y los Valores Objeto de Inscripción Simplificada,” marks a step forward towards the democratization of financing in the securities market, particularly for small and medium-sized enterprises (SMEs) in Mexico.
This draft bill, promoted by the National Banking and Securities Commission (CNBV), makes it easier for SMEs to access financing through the securities market, based on reforms to the Securities Market Law. As a leading business law partner at Vega, Guerrero & Asociados, Joaquín Vega analyzes this initiative as a strategic gateway for companies seeking to expand their opportunities for growth and financial consolidation in Mexico.
Who can be a Simplified Issuer?
The provisions propose the creation of a regime of “simplified issuers” for Mexican and foreign companies with more than two years of operation and with income from their main activity. The following are the types of simplified issuers, which open up various options for accessing the securities market under accessible conditions:
- Simplified Issuers Level I: These companies may list debt instruments with an issuance limit of up to 75 million Investment Units (UDIs), with an annual aggregate of up to 900 million UDIs. Requirements include financial statements audited by an independent auditor and quarterly internal financial reports.
- Simplified Issuers Level II: May list debt instruments or asset-backed securities up to a maximum issue and annual aggregate of 1.25 billion UDIs. They are required to submit two years of audited financial statements and a credit opinion.
- Simplified Stock Issuers: They have the possibility of listing shares, certificates of participation or equity securities with an annual maximum of 1,250 million UDIs. For these issuers, two years of audited financial statements are required and, in certain cases, they must operate under the structure of a stock exchange investment promotion corporation.
All securities issued under this scheme must be offered exclusively to institutional or qualified investors through a public offering. At Vega, Guerrero & Asociados, together with our partner Joaquín Vega, we offer specialized advice to guide our clients through this process.
The Simplified Registration Process
The simplified registration procedure requires the review of documents by the placement intermediary, the stock exchange and the CNBV. Once the application is submitted, the CNBV will review and approve the registration within a maximum of two business days. This agility and clarity in the timeframe allow SMEs to have a real opportunity to access financing in an effective and secure manner.
A Reform for Business Growth
The reform to the Securities Market Law and the simplified registration provisions represent a unique opportunity for small and medium-sized companies to access the financing they need to grow. At Vega, Guerrero & Asociados, we firmly believe that this new regulation opens important doors to strengthen the securities market in Mexico.
In the words of our partner Joaquín Vega: “This step represents a strategic opening that can significantly boost SMEs’ access to financing and ultimately contribute to economic growth in Mexico”.
Our specialized corporate law team at Vega, Guerrero & Asociados is prepared to accompany companies seeking to explore these new opportunities. With extensive experience in issuance processes and financial advisory, we are committed to providing clear and strategic guidance so that companies can take advantage of this window of access to the securities market.
For more information, Vega, Guerrero & Asociados and Joaquin Vega are available to assist your company in every step of the registration process.
