Company name

Telecom Argentina S.A.

Project number

13666-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Argentina

Sector

Telecommunications, Media and Technology

Status

Approved

Disclosed date

09/12/2022

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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10/17/2022

Approval date

11/08/2022

Signed date

N/A

Sponsoring entity

Telecom Argentina S.A.

Team leader

Cabanas Britos, Edgar

Investment type

Syndicated amount

USD $ 525,000,000

Financing amount

USD $ 50,000,000

Currency

USD

Project scope and objective

The proposed investment consists of a potential transaction with Telecom Argentina S.A. consisting of: (i) a Senior Loan for up to US$50 million (“A Loan”); and (ii) a Senior Loan for up to US$450 million (“B Loan”), the proceeds of which would be used to finance sustainable projects ("CapEx") related to 4G/5G infrastructure, including areas far from urban centers that currently lack access to mobile data such as La Consulta in Mendoza, Villa El Salvador in San Juan or Rivera in Buenos Aires, as well as to continue with the expansion of the Fiber to the Home ("FTTH") network, especially in remote regions such as Tartagal, and Tafí Viejo in the northwest part of Argentina and Allen and Plottier in Patagonia, areas where the Company has less coverage. In addition, the proceeds of the financing will be used to refinance certain existing financial obligations, working capital, and general corporate purposes. The financing will potentially be complemented with a co-loan for an aggregate amount of up to approximately US$75 million (“Co-Loan”).

 

The purpose of the transaction is to support the deployment of telecommunications infrastructure to achieve greater digital access, broadband quality, and improved connectivity in Argentina, enabling Telecom Argentina to expand its subscriber base in the medium term.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

TELECOM ARGENTINA B BOND - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

286.7 Kb

TELECOM ARGENTINA B BOND - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)

133.1 Kb

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Matias Colombo

POSITION

Gerente Financiero

PHONE NUMBER

(011) 4968-4000

EMAIL

macolombo@teco.com.ar

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices

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