ARGENTINA Trends and Developments Contributed by: Sergio D. Arbeleche and Sebastián P. Vedoya, Bruchou & Funes de Rioja
Deadline to Apply for RIGI The deadline to apply for RIGI is two years as of the entry into force of the law, which term may be extended by the National Executive Power (NEP) for one additional year. SPV Requirements Single project vehicle The beneficiary of the regime is a “Single Project Vehicle” (SPV) in charge of a Project that quali - fies as large investment under RIGI. These SPVs are legal entities, corporations and/or single member companies, limited liability companies, dedicated branches, and business associations (UTs). Only in respect of PEELPs (not for regular RIGI) the regime allows for more than one SPV to hold and be part of the development of the Single Project. Single project – indivisible ecconomic unit The project must constitute what the RIGI regime defines as “Single Project”: the assets and activities of the SPV constitute an indivisible economic unit (IEU). An IEU exists when the following can be evi - denced: (i) components of the project are inter - connected and/or related, (ii) activities of the project are reasonably related, (iii) the SPV owns all the assets that comprise the Single Project and uses them exclusively for its development. Minimum Investment Amount (MIA) In the case of PEELPs, the Total Investment Amount of the Single Project in computable assets (TIA) must be equal to or greater than the Minimum Investment Amount (MIA), which in the case of PEELPs is USD2 million. For regular RIGI the MIA is generally USD200 million.
Computable assets include all assets except for financial assets, portfolio assets and inventory (trading goods). Once admitted into RIGI, investments made by the future SPV applicant as of 8 July 2024 (even before qualifying under RIGI) can be considered and taken into consideration as fulfilment of the MIA. The acquisition value of certain assets (such as real estate and/or mining concessions, among others), the acquisition of a Project by the appli - cant or the SPV, or of stakes in companies with computable assets (based on the value of such assets) can account for up to 15% of the MIA. 20% or 40% of the MIA within first two years from entering the RIGI For PEELPS, 20% of the MIA (ie, USD400 mil - lion) must be fulfilled within the first two years counted from the date of being admitted into the RIGI as PEELP. For regular RIGI, 40% of the MIA (ie, USD 80M) must be fulfilled within the first two years, counted from the date of being admitted into the RIGI as regular RIGI. Fulfilling the MIA For regular RIGI, the MIA needs to be fulfilled prior to a deadline to be defined by the investor. For PEELPS, two consecutive stages of at least USD1 million each (length of stage to be defined by the investor SPV). Long maturity project (30% rule) Evidence needs to be submitted to show that the Single Project is a long maturity investment. Basically, the way to prove this is by showing that during the first three years counted as from the first disbursement, the ratio between the present value of the projected net cash flow (excluding the value of the investments) and
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