Telecom Argentina pulled off one of the most transformative deals in the country’s corporate history in early 2025, agreeing to acquire Telefónica’s operations in Argentina. The $1.245 billion transaction, announced and closed on February 24, instantly positioned Telecom as the undisputed market leader in the sector.
In less than a month, the company executed a tightly structured, high-stakes acquisition that reshaped its domestic market, consolidated its leadership, and set a benchmark for speed, execution, and strategic financing. “This was a very straightforward transaction – despite the challenging and rapid pace in which it was closed,” says Telecom CFO Gabriel Blasi.
The combined operator now commands 58% of the mobile market, 46% of broadband, and 38% of subscription television. The acquisition – which still requires approval from Argentina’s competition and telecommunications regulators – is poised to accelerate the rollout of fiber and 5G nationwide, strengthen network capacity, and unlock new opportunities in digital services, including AI-driven applications.
Telefónica had floated the idea of divesting its Argentine operations for five years but never acted. A change of leadership in Madrid at the start of 2025 finally brought urgency, and Telecom Argentina was ready. The company secured $1.17 billion in financing through a syndicated term loan with Deutsche Bank, BBVA and Banco Santander, alongside a bilateral loan with ICBC Argentina. Citi and JPMorgan also took part in the lending group.
Blasi explains the decision to opt for loans over capital markets at first: “We were working with a small window to put together a transaction of this volume. We also needed certainty, as we had to commit the funding at the end of the transaction, so we opted for a strategy with a bridge loan for the acquisition.”
Telecom Argentina wasted no time refinancing the acquisition loan. In May, the company reintroduced itself to global capital markets with an $800 million notes offering due 2033, the largest bond in its history, followed by a $200 million re-tap in July. The bond generated robust investor demand, with an orderbook peaking at $1.3 billion and participation from more than 130 accounts.
The notes were marketed through a three-day virtual roadshow that drew over 80 global fixed-income investors. Price guidance of 9.50% ultimately tightened, and the issue was upsized by $50 million. Citi, one of the lead arrangers, highlighted that the deal not only refinanced the bridge loan but also added liquidity to Telecom Argentina’s curve and reaffirmed its place as a seasoned issuer.
The company’s rationale for the acquisition was simple but powerful. “We have an excellent relationship with banks and investors, and more than 30 years registered on the New York Stock Exchange,” says Blasi. “Our partners know who we are and what we want. We had a very simple rationale for the acquisition.”
That rationale builds on nearly $7 billion of investment since 2017 to expand its footprint in Argentina, Paraguay and Uruguay. The deal combines Telecom Argentina’s leading mobile network with Telefónica’s dominant fixed and fiber-to-the-home infrastructure, creating immediate cost efficiencies and improved services. It also expands the company’s s reach into Argentina’s southern provinces, where Telefónica has long been strong.
Argentina’s corporate sector still lags in digital transformation after years of economic headwinds. Blasi sees the combined company as well-positioned to meet pent-up demand for digitalization. “The acquisition will give us the strength to continue investing to ensure that we meet the demand driven by emerging technologies,” he says.
Telecom Argentina’s new scale offers leverage to accelerate nationwide 5G deployment and unlock growth in enterprise solutions powered by AI. Investors, recognizing both the consolidation play and the growth potential, had little hesitation in backing the company’s largest bond ever.
Digital Infrastructure / Telecoms Financing of the Year
Telecom Argentina’s Acquisition of Telefónica Argentina
$1.17bn loan; $800m 9.500% 144a/Reg S notes due 2033
Lead Arrangers and Joint Bookrunners: BBVA (M&A Advisor); Citi (Global Coordinator); Deutsche Bank; Banco Santander; ICBC Argentina; J.P.Morgan
Counsel to Telecom Argentina: Cleary Gottlieb; EGFA Abogados; SVA Abogados
Counsel to Telefónica Argentina: Latham & Watkins
Counsel to Lenders: Linklaters; Tavarone
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