Real Madrid funds innovative underground greenhouse to store Santiago Bernabeu grass at a fixed rate of 1.53%
Yesterday, Tuesday, December 7, Real Madrid signed the extension of the financing of works not initially included in the renovation project of the Santiago Bernabéu stadium with a new loan in the total amount of 225 million euros, with a duration of 27 years and a fixed interest. rate of 1.53%. These conditions are the best ever for long term financing in the sports industry. The loan also includes a grace period for principal repayment, so Real Madrid will not start repaying the loan until July 30, 2024.
It should be noted that Real Madrid closed this transaction without any type of mortgage guarantee or any financial limitation that could affect the ordinary management of the club.
The funding will be used for the construction of a large underground greenhouse which was not foreseen in the initial work due to its complexity and which was technologically resolved at a later date. This greenhouse will allow the automatic removal of the field and its conservation in optimal conditions and in perfect condition to be used during a football match. In this way, the number of events that can be organized without impacting the grass will be maximized.
Real Madrid retained Key Capital Partners as financial advisor and funding coordinator and Clifford Chance as legal advisor. The financing was structured by JP Morgan and Bank of America.