Telecom Argentina collects US$200mn from new bond issue

Telecom Argentina raised US$200mn from a new bond issuance aimed at improving its debt profile and supporting its infrastructure investment plan.

With an original issuance exceeding US$500mn and the completion of a debt swap offer for its Class 1 negotiable obligations due in 2026, the total issuance has reached US$817mn, making it one of Argentina’s largest corporate bonds in terms of volume, according to the company.

Within 90 days, the bond’s cost was reduced from 9.70% to 8.75%, benefiting from a more stable macroeconomic environment and the company’s strong financial and credit profile. The paper has a final maturity of seven years.

Telecom’s bond issuance is part of a global negotiable obligations program of up to US$3bn approved by Argentina's national securities commission (CNV).

“This high level of investor response reflects both domestic and international market confidence in the company’s solidity and its business strategy for the short, medium, and long term,” Telecom said in a release.

Global coordinators for the issuance included Deutsche Bank Securities, JP Morgan, Latin Securities and Santander, with local placements managed by Latin Securities and Banco Santander Argentina.