Bond issue attracts almost £6m

By Express & Echo

A bond issue launched to fund the next phase of development at the Exeter Chiefs' Sandy Park stadium has already attracted subscriptions totalling £5.7m.

An invitation to investors was published in August by Exeter Rugby Group, incorporating the club and the conference centre, as it seeks to raise £7.5m to finance the planned works at the ground.
?
With the deadline for subscriptions approaching at the end of this month, Exeter Rugby Group has £1.8m to go to reach its target.

The Exeter Chiefs 2020 Bond is open to private and corporate investors, with a minimum subscription of £1,000 and a maximum of £4m. Bondholders will receive interest of seven per cent per annum, with the bond maturing in 2020.

Mark Champion, of Isca Ventures, the Chiefs' corporate finance advisors, said: "The take-up from rugby supporters has been fantastic, with a lot of people who have invested a range of amounts from £1,000 upwards.

"It's predominantly private investors but there are some corporate investors. All of them have a desire to be a part of the Exeter Chiefs' success story. So far most of the investment has been attracted from the South West, but there are some Chiefs fans in far-flung places.

"The target audience is people who have a penchant for rugby, and particularly the Exeter Chiefs."

Tony Rowe, chairman and chief executive of Exeter Rugby Group, described the response so far as "very pleasing", adding: "There's a lot of people who share my passion and ambition for the club and what we are trying to achieve.

"But people should make sure they are fully aware of the terms of the bond by reading the invitation document and make their own mind up whether it's for them or not."

If Exeter Rugby Group hits its fundraising target by the end of October, it is hoped works will start towards the end of this year or early next.

The next phase of development will see conference and banqueting facilities in the West Grandstand enlarged to span the full length of the pitch, creating a venue capable of hosting more than 1,000 delegates. Additional seating will replace the North West and South West terraces at either end of the grandstand. The car park will also be enlarged and the main pitch re-laid.

The stadium – which the Chiefs moved to in the summer of 2006 – is due to host three Rugby World Cup matches in autumn 2015. Before then its capacity needs to be increased from its current level of just over 10,700 to 12,300. This will be achieved by doubling the size of the East Terrace.
It is hoped these works will be completed by September 2014.

After the World Cup, attention will turn to the next phase of development at the south end of the ground.

Prydis Wealth Ltd and Michelmores LLP have also advised Exeter Rugby Group on the bond issue.

The seven-year bond cannot be transferred or redeemed early. Interest will be paid bi-annually in two equal instalments. Anyone investing more than £100,000 will qualify for various additional benefits.

More information can be found at www.exeterchiefs2020bond.com