McLaren secure $150m loan from National Bank of Bahrain
The National Bank of Bahrain is partially owned by the same company that owns 56% of McLaren
McLaren Group is set to receive a £150-million loan from the National Bank of Bahrain, as confirmed by the bank with a statement released on June 29, 2020. The National Bank of Bahrain is one of the largest banks in the Kingdom of Bahrain as well as the first indigenous Baharaini bank, first established in 1957. The bank's major shareholder (44%), Bahrain royal family's Mumtalakat investment company, also owns 56% of McLaren.
The last few months have been tough for the company, made worse by the economic and financial aftermath of Covid. Since the beginning of 2020, around 1,200 employees, including 70 people in the company's racing division, have been laid-off, as part of a major restructuring plan to cut costs.
The loan will allow the Woking-based company to get back to work and focus on the upcoming F1 races and the production of road cars with McLaren Racing and McLaren Automotive respectively.
Despite being one of the most successful as well as one of the oldest F1 teams, McLaren's revenue from F1 has been declining since 2015, chiefly because of poor results. After three unsuccessful seasons with Honda, things were looking up with the new Renault engine and they're potentially looking even brighter for the future as McLaren is poised for a return to Mercedes Formula 1 engines in 2022.