Wasps set to launch retail bond in bid to raise funds

Wasps are to launch a retail bond listed on the London Stock Exchange in a bid to become one of the richest clubs in world rugby.

The new 6.5% secured bonds could bring between £25m and £35m into the club, allowing Wasps to compete with French giants such as Toulouse.

Wasps are currently sixth in the Premiership and already close to the salary cap, but the new finance raised by the bonds could allow the club to sign a marquee player.

Last year, the club bought the 32,000-capacity Ricoh Arena in Coventry and moved from their previous home in High Wycombe, which has brought significant financial benefits.

Most Premiership clubs rely on broadcast rights for the bulk of their income but Wasps are able to profit from a concert venue, casino, two restaurants and a hotel at the Ricoh.

Wasps chief executive David Armstrong told Sky Sports: "Investors might be professional or institutional ones, they may be Wasps fans or they may be sports fans, but we are looking to appeal to a wide range of people.

"The bond itself will pay interest at 6.5%, which we hope will be an attractive return, and we are very excited about where it's going to take the club.

"It was part of our plan when we acquied the stadium but we wanted to take a few months just to push the two businesses together and enjoy our new home, and then it was always our intention to refinance round about now."