Barcelona have completed the final €105m tranche of their media bond programme, closing a €210m financing package designed to support the Espai Barca redevelopment and protect the club’s financial position.
The second and final issue was fully subscribed by international investors in less than 24 hours, the club said on Friday. The speed of the operation allowed Barcelona to complete the transaction earlier than originally planned after receiving strong interest during the marketing process.
The deal completes a process which began in July and followed approval from the club’s General Assembly of members and delegates on 19 September. The 202-point margin on the latest bonds matched the figure achieved in July, when half of the overall package was issued at an interest rate of 5.14% after demand exceeded expectations.
Barcelona said the additional borrowing was a strategic measure to cover the gap between the start of repayments linked to the substantial costs of the Espai Barca project and the point at which Spotify Camp Nou is operating at full capacity.
That timing is expected to have a direct effect on the club’s cash flow, making the new issue an important part of the financing structure supporting the redevelopment. The latest bonds add to existing issues launched by Barcelona in 2021 and 2024.
The bonds, known as media bonds, are due to mature in October 2036. Their appeal to investors comes from the repayment priority attached to the club’s television broadcasting income.
Those revenues provide the main and direct security for the account into which the payments are deposited, giving bondholders a defined source of repayment.
Barcelona’s management said it was highly satisfied with both the speed at which the transaction was completed and its continued profitability. The club viewed the result as clear evidence of market support and investor confidence in its ability to generate revenue and develop its long-term plans.
Following the latest issue, Barcelona retained its BBB credit rating, with a stable outlook, from international agency Morningstar DBRS.
That rating was a key factor in allowing Goldman Sachs to lead the expansion of financing for Espai Barca. The €300m increase in funding was also approved at the most recent General Assembly.
Barcelona said the financing arrangements would secure the club’s financial and sporting future through to 2036.
