October 4 – Argentinian club River Plate have announced plans to raise $20 million through a public offering in a financial vehicle that will invest the money in the club, potentially introducing a new investment approach for Argentinian football clubs.
On Thursday, fans and investors were given the opportunity to invest in Club River Plate Financial Trust, an investment tool that allows organisations to obtain financing for specific projects.
The Argentine league holders are aiming to raise 20 billion pesos ($20 million) to fund a series of infrastructure projects set to be completed by 2026, including a new multi-sport centre for hockey, futsal, handball, and volleyball, as well as an educational facility and six youth football pitches.
It also intends to upgrade the stands at the iconic Estadio Monumental and install new LED screens.
To participate in the Trust, investors are required to contribute a minimum of 10 Purchasing Value Units (UVAs), an inflation-indexed measure currently equivalent to about 12,000 pesos ($10.35). The Trust will mature in 30 months, offering a return of 9% per year above inflation, with quarterly payments to investors. This move marks a significant financial strategy for the Argentinian football giant as it seeks to secure funding for long-term development.
Andrés Ballotta, treasurer of the Buenos Aires-based club, said: “This is a completely innovative and disruptive event for the football industry, with an outstanding rating (A+), which marks the economic and financial strength of the institution.”
Portfolio Personal Inversiones (PPI), acting as the placement agent for the Trust, has stated that River Plate has around 350,000 members and a worldwide fanbase of nearly 20 million.
Augusto Posleman, PPI commercial director, said: “This Trust is an investment opportunity for both fans and those who are not. It offers an attractive yield among comparable options… The club’s financial strength and its long-term investment projects support the issuance.”
Contact the writer of this story, Harry Ewing, at moc.l1735145844labto1735145844ofdlr1735145844owedi1735145844sni@g1735145844niwe.1735145844yrrah1735145844