Zhang to refinance: Close to deal with Pimco, €400 Million for three years

Inter president Steven Zhang is close to refinancing his debt with Oaktree by agreeing a three-year deal with American investment firm Pimco. According to reports from Il Corriere della Sera (via Calcio e Finanza), the Californian fund Oaktree will step aside to make way for Pimco: Inter’s debt could remain in California, just 50 kilometers further south. Sources close to the ownership reveal that Pimco, headquartered in Newport Beach, is currently the most reputable fund to replace Oaktree.

While the agreement is not yet finalized, there is reportedly a draft agreement in place. Pimco would provide a loan of €400 million to Zhang, enabling him to repay the €380 million owed to Oaktree by May 20th.

The Chinese family would thus avoid the foreclosure of the current creditor’s pledge on Inter’s shares and, consequently, the loss of ownership of the club. Although the terms are still under discussion, the financing could have a duration of three years, allowing Zhang to contemplate Inter’s future projects with confidence, particularly the stadium project.

Moreover, any offers to purchase or invest in the Nerazzurri could be evaluated more calmly. However, a new debt of €400 million—at an interest rate potentially higher than the 12% negotiated with Oaktree—would represent a significant burden.

Its sustainability will depend on the conditions Zhang can negotiate with Pimco. With the cost of borrowing rising to combat inflation, debt interest rates could increase accordingly. Therefore, Pimco’s loan may serve as a bridge towards the entry of a new investor into Inter’s capital, whether majority or minority, to support Zhang and strengthen the club’s financial structure.

Additionally, Pimco’s intervention would provide time to verify the financial credentials and genuineness of intentions of the latest contender, a potential Saudi buyer from Riyadh, who should at least approach the price envisioned by the Chinese family. While the primary goal remains retaining ownership, the Suning group would be willing to consider proposals for Inter starting from €1.2 billion.

This amount would enable the Nanchino giant to repay Inter’s and its Luxembourg-based controlling entity Great Horizon’s debts, ensuring a profitable exit.