Featured image credit: Real Betis
Spanish LaLiga club Real Betis has received €125m (£104m/$139m) to restructure its debt as part of an agreement with Goldman Sachs that will support the financing of its stadium redevelopment project.
Betis said the deal, which the club has struck in collaboration with its financial advisor Bibium Capital, will enable it to restructure its debt from short to long term under “very favourable conditions” with a maturity of 10 years.
The club is planning a complete overhaul of the Estadio Benito Villamarín, with the project forming a key part of its 2022-26 strategic plan. Rafael de la-Hoz and Gensler landed the contract to design the stadium last year, and detailed designs were presented in June.
The refinancing deal has been announced after Betis recently completed a capital increase of €42.9m, which the club said has helped balance its books so it can pursue projects such as the stadium overhaul.
Betis is also working with Bibium Capital and Goldman Sachs on the financing of the stadium project, which the club states will generate a sufficient increase in income to achieve self-financing status without undermining the club’s resources.
Federico Martínez Feria, corporate general manager of Betis, said: “This agreement allows for a restructuring of the debt. The loans that were contracted under the previous short-term market conditions and with the current interest rates – much higher than the current ones – have been grouped into a single long-term loan and under very advantageous conditions for us.
“The previous step for financial consolidation was the capital increase, which has allowed us to improve the situation to access the capital market under optimal conditions. We have achieved a very positive financial rating, which implies long-term financing capacity, with markedly reduced interest rates, which results in much less effort for the club when it comes to servicing the debt, freeing up resources for other priority areas for Real Betis.”
The Estadio Benito Villamarín project aims to create a new icon for the city of Seville, with plans to widen the entertainment and hospitality offer on match days, before during and after games, and also on days without sporting events.
The new stadium will have capacity for 60,379 spectators, on a similar footing to its current capacity. The project is expected to cost around €70m, with a targeted completion date of June 2026.
Earlier this month, fellow LaLiga club Valencia engaged Goldman Sachs to raise around €120m as it aims to get its long-delayed Nou Mestalla project back on course.
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