Juventus makes debut in international bond market to offset Ronaldo cost

13 February 2019

Ronaldo in Juventus
Photo: Getty Images Juventus needs further funding after paying €100 million to sign Cristiano Ronaldo last year

Juventus is another club raising money in the bond-market.

Emil Gjerding Nielson nielson@offthepitch.com

Juventus Football Club announced it had raised €175 million of five-year debt, according to the Financial Times to seek further funding after paying €100 million to sign Cristiano Ronaldo last year.

The bond marks a debut for the club in the international bond market giving investors an opportunity to invest in the world’s ninth richest football club.

In a statement published on its website, the club, which is listed on the Milan Stock Exchange, announced the placement of a non-convertible bond due in February 2024 with a coupon at 3,375 per cent.

“The purpose of the issuance is to provide the company with financial resources for its general corporate purposes, streamlining the structure and the maturity of the debt,” Juventus said in the statement.

Demand from all over the world

According to the club, the transaction attracted orders for more than €250 million and received demand from Asia, Germany, France, United Kingdom and Italy.

The bond’s prospectus indicates the club can use the new funds to repay existing debt which as of June stood at €310 million including loans, according to Financial Times.

Share price up for the year

Investment banker Morgan Stanley was the lead manager of the bond sale with Italian bank UBI Banca acting as co-lead manager.

Juventus’ share price is up 18 per cent this year according to data from MarketWatch. The market cap of Juventus is £1,33 billion .

Juventus is not the first football club to enter debt markets with local rival Inter Milan and English club Manchester United already having accessed bond markets for financing.