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21st November 2022, 18:43

Government confirms overall cost of new stadium likely to be about £100m over 18 months

Published by GBC News

The overall cost of the stadium is over an 18 month period is likely to be in the region of £100M, the Government has confirmed in answers to questions from GBC.

The deal between the Government and the GFA is as follows:

The Gibraltar Savings Bank will provide an investment, through the acquisition of loan notes to be issued by the GFA, at an interest rate that provides a small but meaningful profit for the Bank.

The investment in the loan notes is secured on the assets of the issuing company, which is the GFA's Gibraltar National Stadium company which already benefits from ownership of the land on which the stadium is built, valued at over £16m, as well as the ancillary aspects of it.

The Government says the investment by the Saving's Bank is very low risk on any analysis, and there is no reason for any depositor with savings in the Gibraltar Savings Bank to have any concerns.

It says the law provides a 100% Government guarantee for the repayment of any maturing deposits should the GSB not be able to repay when the maturity date happens.

The investment by the GSB in the secured GFA loan notes will provide returns and profits from the underlying Real Estate being developed for rent or sale at commercial values.

The Government says this should easily repay the investment with interest and to fully fund the new stadium for the GFA.