Telecom Argentina (IDBI-13666-01)

Countries
  • Argentina
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 17, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Telecom Argentina
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 17, 2022

Disclosed by Bank Sep 12, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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 Tafi 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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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 infrastructureIn 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”).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Telecom Argentina S.A. Undisclosed Communications

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

EMAIL: requestinformation@idbinvest.org

PHONE: +1(202)-566-4566

ADDRESS: 1350 New York Ave NW, Washington, DC 20005

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

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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How it works