Telecom Argentina debt sale disregarded telephonica

(Bloomberg) – Telecom Argentina SA uses international debt markets following the acquisition of the local unit of telephonica SA, a transaction that has a fierce opposition from the Government of President Javier Milei. According to people familiar with the case, the company sells $ 800 million in 2033 bonds. Prices indicate that the notes will deliver a return of about 9.5%, people added and asked not to be identified because they were not authorized to speak in public. The cash returns will be used to pay some of the $ 1.17 billion loans to the company to finance the purchase of the Spanish carrier’s Argentine unit. However, the Milei team examined the agreement, which the regulators asked to ask Telecom again to execute any kind of legal, corporate or commercial law that implies up to six months consolidation with Telephonica. The authorities and competitors argued that the agreement could be a violation of the rules of the monopoly. Milei said at the end of February that the merger would leave Telecom with about 70% of Argentina’s telecommunications industry. The company has Deutsche Bank Securities Inc., Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc., JPMorgan Chase & Co. and Banco Santander SA hired to arrange the sale. The sale follows a series of dollar debt offers by Argentine businesses based on optimism about the second largest economy of South America, with traders rejoicing in Milei’s movements to lift a series of currency markets regulations as part of a $ 20 billion program with the International Monetary Fund. Plus Petrol SA launched its first debt sale abroad on Thursday after acquiring the assets of Exxon Mobil Corp. Pricing training indicates that the oil borer will issue a measure-size effects that have a return of about 8.875%. -With help from Michael Gambale and Brian Smith. (Updates with the size of sale and price guidance in the second paragraph and add context that starts in sixth place) More stories like these are available on Bloomberg.com © 2025 Bloomberg MP