Our Banking, Infrastructure, and Corporate teams advised Club Atlético River Plate Asociación Civil (CARP), as borrower, in connection with a syndicated loan in an aggregate amount of US$ 100,000,000.
The loan structure comprises: (i) a loan from IDB Invest for up to US$ 50 million; and (ii) a loan from CAF for up to US$ 50 million. The co-financing scheme between CAF and IDB Invest reflects both institutions’ commitment to jointly mobilizing resources in order to strengthen infrastructure across the region.
With respect to IDB Invest, the loan proceeds will be used: (i) to refinance bridge financing used for the construction of the new school building and Casa River (the youth residence and development center); and (ii) to finance the construction of improvements to the stadium, including, among others, extending the useful life of the facility, improving its acoustics, increasing capacity to 100,000 spectators and installing a partial roof to enhance the fan experience.
As for CAF, its resources are directed mainly to the stadium’s roof component. By acting as thermal insulation, the roof will reduce direct solar radiation on the facility and, as a result, the energy demand of the climate control system, improving the venue’s energy efficiency and reducing its consumption.
With more than 350,000 members, CARP is one of the sports clubs with the largest membership worldwide, and is widely recognized for its professional football department. The Club offers 20 federated sports, organizes recreational activities for the community and runs its own school with more than 1,700 students per year, spanning from early childhood through higher education and combining academic excellence with sports training.
The loan is backed by a complex security package, comprising the fiduciary assignment of various collection flows and rights of the Club.
In connection with the transaction, our Infrastructure team advised CARP on the principal agreements governing the execution of the project. The team advised the Club throughout the competitive tender process to select the contractor, including the preparation and review of the bidding documents pursuant to which leading local and international construction firms participated in the tender, as well as on the subsequent EPC (engineering, procurement and construction) agreement entered into with Grupo ENG S.A., the selected bidder, for the execution of the stadium’s expansion and roofing works. The team also advised CARP on the technical supervision agreement entered into with SBP (Schlaich Bergermann Partner), a leading German engineering firm renowned for its design and supervision of large-scale structures, including the roofs of Tottenham Hotspur Stadium and the Santiago Bernabéu Stadium.