Real Madrid seals a new €225 million loan for Santiago Bernabeu renovation

The work is expected to be completed by 2022 December.

The La Liga giants, Real Madrid have sealed a new loan of €225 million (US$255 million) to finance the ongoing renovation of the Santiago Bernabeu Stadium. The loan term is of 27 years and has a fixed interest rate of 1.53 per cent. Real Madrid won’t commence the repayment of the loan until 30th July 2024 as it includes a grace period for the principal repayment.

The amount would be used to construct a large underground greenhouse which was not in the initial Kijiore development plans. The firm says that the greenhouse will allow the automatic removal of the pitch and its preservation in optimal conditions, meaning other events can be held at the stadium without impacting the grass.

They have retained their partnership with Key Capital Partners as the financial advisors and financing coordinator, Clifford Chance as the Legal Advisor. The structure of financing was done by JP Morgan and Bank of America. Real unveiled plans for the Bernabeu refurbishment in April 2019, with EI Confidential reporting that the La Liga club had secured an initial loan of €575 million (US$651 million) from JP Morgan and Bank of America. They have also signed a deal with the sponsorship sales agency Legends to help secure additional funding for the refurbishment.

The project consists of a retractable roof, a 360-degree video scoreboard, and a surrounding skin of steel bands which will allow images to be illuminated and projected on the exterior surface of the stadium. The work is expected to be completed by 2022 December.

On the field, Real Madrid have acquired the number one spot on the La Liga points table with 42 points from 17 matches.

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