We advised BID Invest on the granting of financing of up to US$110,000,000 to Metrotel for the expansion of its fiber optic infrastructure in Argentina
Inter-American Investment Corporation (IDB Invest), with the participation of Banco Itau and other entities, is promoting connectivity and sustainability in Argentina through a financing of up to USD 110 million. The proposed financing consists of secured loans for up to USD 50 million, an uncommitted working capital credit line for up to USD 10 million, and uncommitted parallel loans for up to USD 50 million.
On December 5, 2024, CPS Comunicaciones SA (Metrotel) received a secured credit facility of up to USD 50 million. This financing is secured by a series of guarantees, including a pledge agreement and a collateral assignment agreement in favor of the Citibank Argentine Branch,who acted as the local collateral agent.
Metrotel will use the funds to finance the development of fiber infrastructure and other capital expenditures (CAPEX) to expand and maintain its operations in Argentina, as well as to refinance existing debt. The main objective of the project is to strengthen Metrotel’s capacity to offer essential digital services, fostering digitalization, economic competitiveness, and regional integration. The company has been providing telecommunications services to leading companies in Argentina for over 30 years, developing products and solutions for different business segments, seeking customer satisfaction, continuous growth, and technological innovation. Metrotel owns a fiber optic network of over 8000 km, with a robust infrastructure that enables the delivery of reliable and high-availability services.
Bruchou & Funes de Rioja‘s Banking & Capital Markets Department (Buenos Aires) also advised IDB Invest through partner Analia Battaglia and associates Quimey Waisten, Malena Tarrio, and Pedro Azumendi.
Marval O’Farrell Mairal advised Metrotel through a team led by partners Hernan Slemenson and Sergio Talamo, together with associates Juan Pablo Lentino and Candela Di Cuffa.
IDB Invest in-house counsels were Diego Noseda and Pascual Mendez.
Clifford Chance US LLP (Washington DC) advised IDB Invest through a team led by partner Jessica A. Springsteen together with associate Daniela Hernandez.
TCA Tanoira Cassagne (Buenos Aires) advised the Citibank NA Argentine Branch, as collateral agent, through a team led by partners Alexia Rosenthal and Ignacio Criado, together with associate Teofilo Trusso.
