Argentina's Metrotel plans to up investments by at least 60% next year

Argentine telco Metrotel looks to increase its investments by at least 60% next year after receiving financing of up to US$110mn to accelerate the deployment of its fiber optic network to the home.

“We do not yet have the 2025 budget approved by our shareholders, but we estimate that investment will be over 60% more than what was invested during 2024,” Metrotel CFO Iván Pérez told BNamericas.

The company plans to invest around US$15mn in organic growth next year. 

Last year, Metrotel projected higher investments for 2024 but they were ultimately lower than expected.

The financing approved this week includes a US$25mn loan from IDB Invest and US$25mn from Itaú BBA plus a commitment to an additional US$60mn.

The first disbursements will be mainly used to restructure financial debt with a five-year term.

Metrotel currently has 8,000km of fiber optics. The company did not provide further details of plans for infrastructure growth and did not provide a capex figure for this year.

“Each investment project in shared infrastructure is evaluated internally in great detail with regard to technical specifications, polygon and deployment timelines, economic viability and contractual terms with the different operators, all duly coordinated and agreed upon by the different actors,” Pérez said.

Metrotel offers its fiber-to-the-home network in a neutral manner and has operators Movistar, iPlan and DirecTV, among others, as clients.

“In 2025, we will focus on increasing the volume of this business by seeking opportunities for organic and inorganic growth,” said Pérez.

The company expects to grow its infrastructure-neutral business by 27% next year.