Telecom plans US$500mn bond issue to finance investment program

Friday, November 18, 2011

Telecom Argentina (NYSE: TEO) is planning to launch a bond program of up to US$500mn, local newspaper El Cronista reported.

The program is scheduled to be voted on at a shareholders' meeting on December 15.

The funds obtained through this issue will be used to finance the firm's aggressive investment plan for the coming years. The telco expects to invest US$2bn during 2012-14, most of which will go towards the expansion and the upgrade of the firm's fixed infrastructure.

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TEO ended the third quarter of the year with 4.13mn fixed lines in service and 1.5mn fixed broadband subscribers. In the mobile segment, the telco operates through its Personal unit.

TEO is majority owned by European telecoms operator Telecom Italia (NYSE: TI).