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Real Madrid

Real Madrid finances an innovative underground greenhouse to store the Santiago Bernabeu's grass at a fixed rate of 1.53%

08/12/2021

Yesterday, Tuesday December 7th, Real Madrid signed the extension of the financing of the works not initially included in the Santiago Bernabéu stadium remodelling project through a new loan for a total amount of 225 million euros, with a term of 27 years and a fixed interest rate of 1.53%. These conditions are the best ever obtained for long-term financing in the sport industry. The loan also includes a grace period for the repayment of the principal, so that Real Madrid will not start repaying the loan until 30 July 2024.
 
It should be remarked that Real Madrid has closed this transaction without any type of mortgage guarantee nor any financial limitation which might 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 pitch and its preservation in optimal conditions and in perfect shape to be used when a football match is to be held. In this way, the number of events that can be held without impacting the grass will be maximised.
 
Real Madrid has retained Key Capital Partners as financial advisor and coordinator of the financing and Clifford Chance as legal advisor. The financing was structured by J.P. Morgan and Bank of America.
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