English Premier League football club Tottenham Hotspur has signed a £400m ($514m/€457.4m) loan to help finance the construction of its new stadium.

According to Bloomberg, the five-year loan will now replace an existing £200m interim financing plan established in December 2015. The club has already withdrawn £100m of this amount.

Spurs signed the loan agreement with Bank of America Merrill Lynch, Goldman Sachs Group Inc. and HSBC Holdings Plc. The financing facility is priced at libor plus 2.25 per cent to three per cent.

Matthew Collecott, director of finance and operations at Tottenham, said the loan will only be used to help fund work on the new 61,500-capacity stadium and not for improvements to the club’s playing squad.

“We are delighted to have three of the most prestigious and globally recognised banks supporting us,” Collecott said. “This is not going to touch the football, these are very separate budgets.”

The new stadium is scheduled to open in time for the 2018-19 season, with the club to play at Wembley Stadium during the 2017-18 campaign while work takes place.

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