Telecom Argentina II

completed

Telecom Argentina S.A. (“Telecom” or the “Company”) is a leading provider of mobile, cable TV, broadband internet and telephony bundled services (i.e. quadruple play) in Argentina, Uruguay and Paraguay. In October 2016, IFC signed and fully disbursed a loan of US$500 million with Telecom’s mobile services subsidiary, Telecom Personal S.A. (“Personal”), including US$100 million for IFC’s own account, US$300 million B Loan and US$100 million Parallel Loan (refer to Project “Telecom Personal” # 36171, which has shown a satisfactory E&S performance during the first year of IFC supervision). In 2017, Personal was merged into Telecom Argentina. In January 2018, Telecom Argentina and Cablevision merged and the surviving entity is Telecom Argentina. The proposed project consists of a new corporate finance facility of up to US$350 million to Telecom, out of which US$100 million A-loan and the remainder to be mobilized through either MCPP or B Lenders. Telecom Argentina has a total of US$8 billion worth assets, including 6,049 telecommunication sites and 3,050 real estate properties (48% owned by the company and 52% under lease contracts).  The loan will fund the company’s continued rollout of 4G mobile network and further expansion of its fixed broadband services.  Telecom will install additional 770 telecommunication sites providing 4G connectivity across the country. Additionally, the project will support the expansion of Wi-Fi circuit in Argentina (former Cablevision), and the expansion of company’s fiber-optic network.