Kier secures new funding
Construction, services and property group Kier is set to benefit from a multi-million pound loan under the government's funding-for-lending scheme (FfLS).
Construction, services and property group Kier is set to benefit from a multi-million pound loan under the government's funding-for-lending scheme (FfLS).
The firm has entered into a £30m unsecured four-year bilateral loan with Lloyds Banking Group.
The FfLS was introduced by the government partly to stimulate investment in UK infrastructure.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Kier said the loan gave it with competitively priced funding to be used in connection with its infrastructure and related projects.
The company also said it had issued 7-year and 10-year notes in aggregate principal amounts of £45m and $28m in four series, with coupons ranging from 4.2% to 4.8% per annum.
The notes will be used to refinance Kier's existing £17m 6.4% notes and $22m 6.2% notes, which will mature on February 19th 2013, and for continued investment in Kier's property development pipeline.
Group Finance Director Haydn Mursell said the private placement and the FfLS loan increased the group's available funds and have been secured at very competitive pricing levels.
"The FfLS clearly indicates that the UK government is committed to supporting infrastructure projects as a means of moving the UK economy out of recession," he said.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Is a mortgage in retirement always a bad idea?
A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discount
UK small caps have been unloved for some time, but a shifting economic environment could give them a boost