VENEZUELA

On March 11, the National Superintendency of Securities (SUNAVAL in Spanish) issued a resolution in the Official Gazette that establishes the guidelines for the public offering of securities called “Valorem” to be used by entrepreneurs in the securities market. The regulation indicates that these securities are intended for small companies that wish to enter the world of the stock market to obtain financing for business projects. It also determines the conditions for the application of Valorem, the requirements for public offerings, among others. The resolution is already in force.

The text indicates that the Valorem is a short-term financial instrument for raising funds with a maturity of no less than 15 days and no more than 1 year. It also states that it is a negotiable instrument in stock exchanges, that the cancellation of the capital invested in them is made in bolivars and that the presentation of audited financial statements is not required for its issuance. This security may be issued by natural and legal persons qualified as entrepreneurs or small enterprises.

On the other hand, the regulation mentions that the issuance of Valorem must be related to investment in entrepreneurial projects that are in their initial stage or in progress and require financing for their growth. In turn, entrepreneurs wishing to make a public offering of the Valorem will have to hire the services of a brokerage firm to prepare, develop and financially structure the issuance of this security and be authorized to do so by SUNAVAL.