04 - 06 April
News
McLaren secure £150m loan from the National Bank of Bahrain
Share
Ahead of the 2020 Formula 1 season opener in Austria this weekend, McLaren have agreed a £150m loan arrangement with the National Bank of Bahrain to shore up their finances.
The British team have been assessing a number of options available to them to secure the required funding to solidify their long-term future, following the challenges the coronavirus pandemic has placed on the company.
One option involved beginning legal proceedings to allow them to take a loan on their factory in Woking and heritage car collection.
Another option was securing financing through the National Bank of Bahrain, which is 44% owned by the Bahrain sovereign wealth fund Mumtalakat Holding Co – which hold a 56% stake in the McLaren Group.
READ MORE: ANALYSIS: Why are McLaren considering a partial sale of their F1 team?
On Monday, the National Bank of Bahrain said in a statement that “final documentation has been signed and all the necessary approvals have been granted in relation to a £150m financing facility”.
The team will be back racing with Lando Norris and Carlos Sainz this weekend at the Austrian Grand Prix
The agreement allows McLaren to fully focus on the upcoming races, with cars hitting the track on Friday, while giving them extra time to find further funding they hope can guarantee their long-term future and give them the platform to become a frontrunning team once again.
The last few months have been challenging for the company, with the McLaren Group announcing they will make around 1,200 employees redundant across their technology, automotive and racing businesses.
The move is part of a restructure in response to the impact of the coronavirus pandemic and the implementation of a budget cap in F1 from 2021 onwards. McLaren made huge progress last season, emerging as the strongest team in the midfield to finish fourth in the constructors’ championship, their best season finish since 2012.
READ MORE: McLaren – Everything you need to know before the 2020 F1 season starts
YOU MIGHT ALSO LIKE
News ‘It’s tough’ – Lawson shares first message after Red Bull seat swap with emotional social media post
News Tsunoda to replace Lawson at Red Bull from Japanese GP as New Zealander drops down to Racing Bulls
Podcast F1 EXPLAINS: What it’s like to be an F1 team boss – with McLaren’s Zak Brown live in the paddock
Feature ANALYSIS: Why Red Bull decided swift action was needed as Tsunoda is promoted in place of Lawson
