The board of directors of Real Madrid has approved the closure of funding for the remodeling of the stadium Santiago Bernabeu. The credit is for an amount of 575 million euros, for a term of 30 years and a fixed interest of 2.5%. The maturity of the loan, on July 30, 2049, after paying 27 installments, will raise the total cost of the work to 796.5 million.
Madrid says on its official website that "this operation has been closed without having to provide any type of mortgage guarantee or financial limitation on the management or indebtedness of the club, so that it can develop its normal activity without being affected by the payment of the works". The loan also includes three years of depreciation.
Two United States Banks
The club also reports that the financing has been structured by J. P. Morgan and Bank of America Merrill Lynch with the collaboration of Banco Santander and Société Générale. CaixaBank will act as agent of the operation.
The intention of Madrid, which recently got permission from the City Council, is to start work when this season ends. They will last for three seasons, until October 2022. It is not yet known who will execute the works, although it has been leaked that there are four candidate companies: Ferrovial, FCC, Acciona and Sanjosé.