The National Securities Commission issued Resolution 24/2017 by which it establishes the documents and requirements for the registration of Multilateral Organizations as issuers, as well as of the bonds to be issued by them, for the purposes of their public offering on the stock exchange.

Paraguay participates in Multilateral Organizations and, in this respect, Law No. 1284/98[1] establishes in its ninth article the following: “...The other legal entities in the which the State has a participation and which issue publicly offered securities, shall be subject in all respects to the provisions of this Law”.. Article 6 states: “...The Commission may exempt certain public offerings from complying with any of the requirements of this Law, by means of general rules”.

Based on the aforementioned articles, the National Securities Commission considered it necessary to establish a special simplified regime for the registration with the National Securities Commission of Multilateral Organizations and the bonds issued by them for public offering and trading on the stock exchange, thus issuing Resolution 24/2017.

This regulation also clarifies that the National Securities Commission does not pronounce on the quality of the securities issued within the framework of the issuance program. The fact that the Commission has registered the issuance only certifies that the program has complied with the legal and regulatory requirements set forth in the aforementioned Resolution, but it does not imply that it guarantees its payment, solvency or that it expresses a value judgment about it, nor about the future performance of the issuing entity. The information contained and presented is the sole responsibility of the issuing Multilateral Organization and each investor shall evaluate the convenience of acquiring these issued securities.

As an attachment you will find Resolution 24/2017 and in case of consultation or clarification, please do not hesitate to contact Cynthia Fatecha (cfatecha@vouga.com.py) or Rodolfo Vouga (rgvouga@vouga.com.py)

[1] Securities Market Law.