**Telecom Argentina Moves to Raise $800 Million Amid Controversial Acquisition**
Telecom Argentina SA is entering the international debt markets with plans to issue $800 million in bonds maturing in 2033. This move follows the company’s recent acquisition of Telefonica SA’s local unit, a deal that has faced significant backlash from the administration of President Javier Milei. Sources familiar with the situation indicate that the bonds are expected to yield approximately 9.5%.
The funds raised from this bond sale will be allocated to repay part of the $1.17 billion in loans taken out to finance the acquisition of Telefonica’s Argentine operations. However, the Milei administration has placed the transaction under review, leading regulators to instruct Telecom to refrain from any legal, corporate, or commercial actions that would imply consolidation with Telefonica for up to six months. Concerns have been raised by authorities and competitors regarding potential violations of anti-monopoly regulations, with Milei asserting that the merger could result in Telecom controlling around 70% of Argentina’s telecommunications market.
To facilitate the bond sale, Telecom has enlisted the services of several financial institutions, including Deutsche Bank Securities Inc., Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc., JPMorgan Chase & Co., and Banco Santander SA. This bond issuance comes amid a wave of dollar-denominated debt offerings by Argentine companies, driven by renewed optimism in the country’s economy. Traders have responded positively to Milei’s recent efforts to relax currency market regulations as part of a broader $20 billion agreement with the International Monetary Fund.
In a related development, Pluspetrol SA has also initiated its first international debt sale following its acquisition of Exxon Mobil Corp’s assets in Argentina, with expectations of issuing benchmark-sized bonds at a yield of around 8.875%.
As Telecom Argentina navigates this complex landscape, the implications of its acquisition and subsequent financing efforts will be closely monitored by investors and regulators alike.
**FAQ**
**What is Telecom Argentina’s recent bond issuance for?**
Telecom Argentina is issuing $800 million in bonds to help repay loans taken out for its acquisition of Telefonica’s local unit, amidst regulatory scrutiny of the deal.
