The loan has a term of 27 years and a fixed interest rate of 1.53 per cent. It also includes a grace period for the repayment of the principal, so that Real will not start repaying the loan until 30th July 2024.
The funding will be used for the construction of a large underground greenhouse which was not in the initial Bernabeu redevelopment plans. Real say 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.
Real have retained Key Capital Partners as financial advisor and coordinator of the financing, and Clifford Chance as legal advisor. The financing was structured by JP Morgan and Bank of America.
Real unveiled plans for the Bernabeu refurbishment in April 2019, with El Confidencial reporting the LaLiga club had secured an initial loan of €575 million (US$651 million) from JP Morgan and Bank of America. Real also signed a deal with sponsorship sales agency Legends to help secure additional funding for the refurbishment.
The project will include 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. Work is not expected to be completed until the end of 2022.