Authorities approve Real Madrid's loan for the remodelling of the Bernabeu

The remodelling of the Estadio Santiago Bernabeu has taken a step forward, as Real Madrid's board of directors have announced the approval of a 575 million euros loan.

As declared by the club, the deal will cover 30 years, with a fixed interest rate of 2.5 percent

"The Ordinary General Assembly of Committees held on September 23, 2018, has approved the funding for the remodelling of the Estadio Santiago Bernabeu for a total amount of 575 million euros, for a term of 30 years and a fixed interest rate of 2.5 percent," read the Los Blancos' statement.

"This financing has been structured through a loan with three tranches, in July 2019, July 2020 and July 2021, which coincides with the planned needs for the payment of the works.

"Real Madrid have closed this agreement without having to provide any type of mortgage guarantee or financial limitation on the management or indebtedness of the club.

"Hence, the club can develop their normal activity without being affected by the payment of the works."

JP Morgan and Bank of America Merrill Lynch will fund the project with the collaboration of Banco Santander, Societe Generale and CaixaBank.