Kier raises £95m in funding

Contractor Kier has announced it has raised £95m to spend on housing development and infrastructure schemes in two separate deals.

The firm said it had successfully issued loan notes in the US private placement market for the value of approximately £65m, which it said would be used to re-fiance existing loan notes and for “continued investment in Kier’s property development pipeline.”

In addition it said it had entered into a £30 million unsecured 4-year bilateral loan with Lloyds Bank under the government’s Funding for Lending scheme (FfLS), and which it said has already been drawn down in full.

 Haydn Mursell, group finance director of Kier, said he was “delighted” with both of the agreements. “The private placement and the FfLS loan increase the Group’s available funds and have been secured at very competitive pricing levels,” he said. “As a result of this loan and the projects it will finance, our supply chain will also benefit, demonstrating the FfLS’ importance to the UK in general. We are also grateful to Lloyds for its continued support to Kier and the construction sector.”