Aiming High for Women's Football: SV Werder Bremen's New Fundraising Ploy
Werder Bremen announces the launch of a new bond issue
In the heart-wrenching DFB Women's Cup final loss to FC Bayern, SV Werder Bremen didn't let their spirits dampen. Eager as ever, this esteemed German club, the thirteenth-largest in sports, is eyeing a significant investment in the booming sector of women's football. To fund this ambitious endeavor, Werder Bremen GmbH & Co KG aA is reaching out to both retail and institutional investors with a fresh debt capital bond offering.
This dynamic bond targets an ambitious target volume of 20 million euros, set to span until 2030. As much as 18 million euros of the funds raised will be reserved for refinancing the first Werder bond, maturing in 2026. Investors holding the existing 2021 bond can opt to exchange their holdings for the new bonds until 19 May.
"We anticipate a high exchange rate," shared Klaus Filbry, Chairman of Werder Bremen's Management Board, with Börsen-Zeitung. The additional funds will primarily secure critical infrastructure projects in the Pauliner Marsch, including a football campus, multiple pitches, and the Platz 11 sports facility shared by the Werder women and amateur sports.
Entry-level investors can purchase bonds with an interest rate (coupon) ranging from 5.75% to 6.25% for minimum denominations of 1,000 euros. The final interest rate and total nominal amount will be finalized upon the conclusion of the offer period on 22 May.
This bond aims not only to facilitate fundraising but also to encourage investments in growth areas, like women's football, digitalization, and artificial intelligence. The issuance process will take place in Luxembourg and Germany, led by Bankhaus Metzler as Sole Global Coordinator.
Capital market funding has been a popular financing tool among football clubs over the past two decades. However, the results have not always been favorable for the fans. For example, Arminia Bielefeld's creditors were forced to waive repayment and interest payments on their 2011 bond to stave off bankruptcy, while Alemannia Aachen suffered a total loss due to relegation to the third division.
Despite these challenges, Werder Bremen's first bond was a remarkable success, making it the most successful such issue among any sports club in Germany. "We're particularly proud of it because we issued it under difficult conditions in 2021," said Filbry. Since then, the club has experienced positive growth in all areas.
Holders of the existing bond can exchange their holdings for new bonds with the same nominal value of 1,000 euros, plus a cash settlement of 10 euros and pro-rata accrued interest. From 2 to 22 May, fans and investors can subscribe to bonds as part of the public offering, either via the Werder Bremen website or through Deutsche Börse AG's subscription functionality "DirectPlace" until 22 May, provided the offer period doesn't close early.
While specific details about the intended use of the new funds have yet to emerge, past experiences indicate that these funds may support a variety of club operations, such as:
- Infrastructure Development: Facility improvements (training grounds, stadiums, administrative buildings)
- Player Acquisitions: Purchasing new talent or extending contracts with existing players
- Marketing and Sponsorship: Enhancing marketing efforts and securing sponsorship deals
- Women's Football: Advancing women's teams, with improved facilities, coaching, and player recruitment
- Youth Development: Nurturing future talent through youth academies
With patience and anticipation, Werder Bremen fans and investors await further details on how this fresh capital injection will help shape the club's future.
"SV Werder Bremen, eager to boost their women's football program, is considering investments from both retail and institutional investors. These funds, raised through a debt capital bond offering, could be allocated to critical infrastructure projects in the Pauliner Marsch, such as a football campus, multiple pitches, and the Platz 11 sports facility."
"Aside from serving as a means of fundraising, the new bond initiative aims to encourage investments in growth areas like women's football, digitalization, and artificial intelligence, demonstrating Werder Bremen's commitment to various aspects of progressive development."
