BrandArena: Ronaldo Effect: Juventus Eye International Bond Market to Raise €150m

Thursday, 14 February 2019

Ronaldo Effect: Juventus Eye International Bond Market to Raise €150m

After paying €100m as signing fee for former Real Madrid star and Portuguese striker, Cristiano Ronaldo last year, Juventus is looking to tap the international bond markets for the first time to raise fresh funding.

The Italian giant, which is listed on the Milan Stock Exchange, is looking to raise €150 million of five-year debt, expected to offer a yield of around 3.5 per cent. Investment banking company, Morgan Stanley is leading the bond sale, along with Italy’s UBI Banca.

According to emerging reports, the bond does not carry a credit rating. The bond’s prospectus indicates that the club will use the new funds to repay existing debt.

As of June, Juventus had €310 million of debt, including loans with Italian banks such as Monte dei Paschi di Siena and factoring facilities with lenders including UniCredit.

Juventus is not the first Italian football club to tap the international markets in recent years, with Goldman Sachs helping Inter Milan raise a €300 million bond at the end of 2017. Inter Milan is majority owned by Chinese retail conglomerate Suning.

With the rise of sports marketing, many clubs can now gain financial support globally especially in Europe. 

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