Telecom Argentina plans refinancing issue for Friday

Telecom Argentina plans refinancing issue for Friday

Bonds Debt Capital Markets Telecoms Argentina

Telecom Argentina plans to issue over $200m in international notes on Friday, as it becomes the third Argentine corporate to issue debt in the past two weeks.

Bookrunners Citi, HSBC and JP Morgan are expected to price the notes in line with the 8.75% to 9.2% that YPF and Pampa Energia paid in their recent $500m and $300m offerings, respectively, analysts said.

The sale’s proceeds will be used to finance a $200m buyback of the company’s 6.5% notes due in June 2021.

Fitch rated the buyback B+, highlighting Telecom Argentina’s “robust financial profile, underpinned by its operational cash flow generation and relatively conservative capital structure.”

Analysts expect Argentina’s corporate bond market to pick up ahead of presidential elections on October 27.

Strong appetite for emerging-market paper and a long hiatus for Argentine offerings should also help fuel the trend, said Walter Molano, chief economist at BCP Securities.

“The fact that Argentine assets have performed well indicates that appetite is growing,” he said

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