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Leicester City have taken out two bank loans as they press ahead with the build of their new training ground and the development of the King Power Stadium.

City have borrowed from Australian multinational Macquarie Group to help fund their big infrastructure projects, taking out loans in October and December.

The club’s new training headquarters in Seagrave could potentially cost £100million, while a similarly grand investment will be needed to expand the King Power Stadium, with plans to develop Filbert Way in their initial stages.

The first loan revolves around Riyad Mahrez’s switch to Manchester City, with Leicester factoring the £60m transfer fee in order to receive it up front.

The deal to sell Mahrez to the Premier League champions was agreed last summer, Leicester and Man City settling on a payment plan of three instalments.

Man City paid a portion up front with two £18m instalments to follow on July 31, 2019, and July 31, 2020.

The Abu Dhabi-backed club will now pay those instalments directly to the bank with City taking a loan to receive the cash immediately.

The second, larger loan, taken out in December, has been guaranteed against the TV money City will receive from the Premier League at the end of the next two seasons.

As long as City are not relegated this term, those central payments will total between £200m and £250m, depending on the club’s finishing league positions and how often their matches are broadcast.

(Image: Michael Regan/Getty Images)

The loan figure is unknown and may not necessarily match the combined TV money figure.

It is believed that both loans were planned in City’s budget and are not as a consequence of the death of owner Vichai Srivaddhanaprabha, who tragically passed away in the helicopter crash outside the King Power Stadium three months ago.

The evolution and development of City was a big part of Khun Vichai’s vision for the club.

He said last year: “Evolution is crucial to keeping our club moving forward, to remaining an established, successful, competitive force in the Premier League, to continuing to create memories for generations to come.

“The development of our proposed new training ground at Seagrave and the potential expansion of King Power Stadium are both are exciting strides forward for Leicester City in the coming years.

“Our ambition is to continue to grow and develop, to continue to reach for success, together.

“We aim to make projects such as our training ground and stadium developments sources of pride for the Leicester community, whose support continues to underpin everything we aspire for.”

Building work has started on the new training complex, based at the 185-acre site of the former Park Hill Golf Club off the A46, after the plans were approved by Charnwood Borough Council in October.

Although the training ground and stadium will take priority, it is not expected to impact heavily on City’s dealings in the transfer market.

However, there has been a slowdown in spending since Claude Puel came to the club with an estimated net spend of £25m in the three transfer windows he has overseen – the fourth lowest figure of the 20 Premier League clubs in that period.

City made record profits of £92.5m in 2016-17 off the back of their successful Champions League campaign.

With no European football, the figures for the 2017-18 season, likely to be released in March, will be considerably lower, although it is expected City will again post a profit.