The £30m unsecured, four-year loan was signed with Lloyds Banking Group under the introduced by the government’s new scheme to stimulate investment in UK infrastructure.
Kier also increased its available funds with a US private placement at more competitive rates.
Today it said it has issued 7-year and 10-year notes for £45m and $28m at rates of 4.2% to 4.8% per annum.
These will be used to refinance Kier’s existing £17m and $22m notes at 6.4% and 6.2%, which mature in February, and allow 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.