Hibs hope to be debt free in ten years

Leeann Dempster
Leeann Dempster
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Hibs have agreed a refinancing plan which they hope will lead to the club being totally debt-free by 2025.

A statement on the club’s website confirmed details of a new mortgage and the capitalisation of debt owed to the club’s parent company.

The mortgage will be interest free, with repayments fixed at £500,000 per year for ten years, starting August 2015. Payments to the bank over the past three years had averaged £584,000, ranging from £494,000 to £755,000.

All Hibs’ bank debt was wiped out in a deal agreed last month. This means repayments of £1.6 million due in 2018 and £2.5m due in July 2020 no longer apply.

Hibs chief executive Leeann Dempster said: “The terms of the new mortgage provided by the holding company are much more favourable to the club than the terms of the previous bank mortgages.

“The club is pleased to have had the support from the holding company to reach a settlement with the bank and to refinance the balance of the holding company lending through a simple mortgage.

“In doing so, we have also tackled the issue of the future bullet repayments of £1.6m and £2.5m early, and created a smooth level of affordable repayments for the next ten years which should see the club debt free by the time of its 150th anniversary [2025].”