Telecom Argentina II (IFC-40857)

Countries
  • Argentina
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
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
Jan 10, 2019
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 S.A.
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.
Loan Amount (USD)
$ 350.00 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.
Project Cost (USD)
$ 1,000.00 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 @ IFC website

Updated in EWS Dec 14, 2018

Disclosed by Bank Dec 7, 2018

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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.

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.

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

The total project cost is estimated at US$1.0 billion. The proposed IFC investment is up to $350 million debt financing, including up to US$100 million loan from IFC’s own account and the remaining to be mobilized.

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 -

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.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works