Company name

Telecom Personal S.A.

Project number

11975-01

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
tooltip

B

Country

Argentina

Sector

Telecommunications, Media and Technology

Status

In implementation

Disclosed date

09/01/2016

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

Projected board date
tooltip

10/04/2016

Approval date

11/01/2016

Signed date

04/07/2017

Team leader

Lesme, Hernando

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 400,000,000

Currency

USD

Project scope and objective

This is a corporate loan consisting of an IIC A Loan up to US$16 million and an IDB A loan up to US$84 million (total IDB Group financing up to US$100 million). The IDB Group loan will provide parallel co-financing within an International Finance Corporation (IFC) A/B loan of up to US$500 million for the same transaction. The loan tenor is for 6 years, including 2.5 years grace period (only for repayments of principal). The IFC package (including the IDB Group Loan) will comprise of a mobilization up to the amount of US$400 million.

Incorporated in 1994, Telecom Personal S.A. (“the Company” or “Personal”) is a leading mobile network operator in Argentina with presence in Paraguay through its subsidiary Nucleo. The project aims to support the company’s capex plan for Argentina including the deployment of a nationwide 4G LTE network and for refinancing of short term debt.

The Company is 99.99% owned by Telecom Argentina S.A (“Telecom Argentina”), an operator of fixed (local and long distance), data and mobile voice and internet services. Telecom Argentina is one of the largest private sector companies in Argentina in terms of revenues and number of employees and enjoys a strong reputation in terms of integrity, governance and general operations.

Telecom Argentina is majority owned by Nortel Inversora S.A. (54.7%), with most of the rest of the shares are listed in the Buenos Aires and the New York Stock Exchange. Nortel Inversora S.A. in turn is controlled by Sofora Telecomunicaciones S.A. (78.4%), which is owned by the W de Argentina – Inversiones S.A. (32%) and Fintech Telecom LLC (68%). This transaction has benefited from close coordinating and information exchange between the IIC and the IFC, involving the respective institutions’ origination and environmental and social (E&S) teams, with resulting process efficiencies and value added for the client.

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

49.1 Kb

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

N/A

EMAIL

N/A

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