Rugby union team Wasps announces £35m bond scheme

Rugby union club Wasps has announced plans to launch a seven-year bond scheme in the hope of raising up to £35m (€48.8m, $53m).

The club, which currently lies in sixth place in the Aviva Premiership, said that the bonds will be available for a minimum investment of £2,000 with a fixed gross rate interest of 6.50% a year until 2022. Interest will be paid twice annually on 13 November and 13 May.

After the initial outlay, bonds will be able to be bought and sold in multiples of £100. They will be available to buy until 5pm on 6 May.

Wasps chief executive David Armstrong confirmed that the bonds would be available on the London Stock Exchange's Order Book for Retail Bonds, adding that it "is the first transaction of its kind for the sports industry".

The club recently moved into Coventry Football Club's Ricoh Arena after purchasing half of the rights to the stadium from Coventry City Council for around £20m.

Armstrong said that the switch from Adams Park to the new stadium, which can also act as a concert venue, has been instrumental in creating new revenue for the former London-based team.

Armstrong said: "The move to the Ricoh Arena was transformational for Wasps and our new home provides us with multiple income streams and the opportunity to create of one of the UK's premier sport, business and entertainment complexes, while offering sponsors and partners the exciting opportunity to get involved with the new second home of English rugby."