IFC Grants a Loan to Telecom Argentina
IFC, a member of the World Bank Group, agreed to provide a loan for up to US$450 million to Telecom Argentina, one of the leading telecommunications companies in the country that offers fixed and mobile high-speed connections and pay tv, through an integrated content platform, to boost the expansion of broadband coverage with a focus on underserved regions in Argentina. The financing package includes US$110 million from IFC, with the additional funding to be mobilised by IFC from international banks.
IFC’s financing will help improve Argentina’s mobile and fixed broadband infrastructure through the installation of high-speed fiber optic and the upgrade of wireless transmission equipment by Telecom Argentina. This second financing follows an earlier one in 2016 and will help revert a decade-long trend of underfunding in Argentina’s telecommunications sector which has hampered coverage, quality of services and data transmission speeds, particularly outside the city of Buenos Aires.
Becker, Glynn, Muffly, Chassin & Hosinski LLP acted as international transaction counsel to IFC for this financing, having previously worked with IFC on a 2016 financing of a Telecom Argentina subsidiary. The Becker Glynn team was led by Partner Peter Hosinski, with primary assistance from Associate Andres Sardi. Partner Rachel Wasserman, Counsel Kenneth Stuart, and Foreign Associate Helena Romero also offered assistance to the team.