FC Barcelona seeks US$1.6 billion in private debt to remodel stadium

The club is targeting investors in the US private placement market to raise long-term financing, according to people with direct knowledge of the matter. A spokesperson for FC Barcelona confirmed the conversations

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are arranging the sale, according to people familiar with. Representatives for both banks declined to comment.

The Catalan soccer team plans to renovate its historic headquarters and develop new facilities as part of a project known as Espai Barça.

The financing plan consists of three tranches of €500 million senior bonds due in 2032, 2045 and 2052, according to a note from the Kroll Bond Rating Agency, which has a stable outlook for the club. The proposed terms include securing the offer against new or incremental revenue with the understanding that there will be no mortgage on the stadium, according to Kroll.

ESG (environmental, social and corporate governance) ratings and analysis firm Morningstar Sustainalytics has certified the securities the club will issue in the US market as green bonds, Barcelona president Joan Laporta said at a news conference on Thursday. He added that they are expanding their market of potential investors, as well as the possibility of obtaining financing at a better price.

Big-name soccer clubs such as Tottenham Hotspur have previously turned to the US private placement market for long-term debt.

The credit is usually secured with the stadium it finances, which means that investors can become owners of the venue if the club defaults on the debt.

Barcelona have gone to the US private placement market before, when they raised €525m using broadcast revenue as collateral. Part of that debt has already been paid as a condition to reach an agreement with the American fund Sixth Street to sell a part of its television rights for 25 years.