EQT Eqtec Plc

 

TIDMKED 
 
RNS Number : 4978V 
Kedco PLC 
03 November 2010 
 

 
 Kedco plc 
 ("Kedco" or the "Company") 
 
 Statement re Project 
Finance 
 
 Kedco plc (LSE: KED 
3 November 2010 
                                    Kedco plc 
                           ("Kedco" or the "Company") 
 
        Term sheet received in respect of project finance for Newry plant 
 
Kedco plc (LSE: KED.L), the cleantech group focusing on clean energy production 
in the UK, Ireland and Eastern Europe, announces today that it has been offered 
a project finance facility by Ulster Bank Group, a subsidiary of the Royal Bank 
of Scotland plc, to provide secured debt facilties in respect of the Company's 
biomass electricity and heat generating plant in Newry, Northern Ireland. 
 
The facilities, which are subject to the satisfaction of certain pre-conditions, 
total GBP9.9m and comprise a term loan as well as VAT, working capital and 
performance bond facilities. Kedco is currently working towards satisfying the 
pre-conditions and agreeing legal documentation. The Company anticipates 
entering into binding agreements in early 2011. 
 
The purpose of the facility is to complete the construction of the 4MW biomass 
electricity and heat generation plant located in Newry, Co. Down. The site in 
question is secured on a 20 year lease and has full permitting approval. The 
plant has a total estimated capital cost of GBP15 million and is expected to 
generate EBITDA of approximately GBP2 million per year from the sale of 
electricity once complete. In excess of GBP6 million has been invested in the 
Newry project to date and site construction is almost complete. 
 
Kedco is also pleased to note the recent announcement by the UK government of 
its ongoing commitment to the Renewable Heat Incentive ("RHI") programme. 
 
 
Donal Buckley, Chief Executive Officer of Kedco, commented: 
 
"We are very pleased to have been offered this project finance facility by 
Ulster Bank. We also strongly welcome the confirmation on 20 October 2010 by the 
UK Government that the Renewable Heat Incentive will go ahead in 2011. We 
believe the RHI Scheme is the first of its kind in the world and we believe that 
it will add significantly to the value of our biomass electricity and heat 
generating projects." 
 
 
 
For additional information please contact: 
 
+--------------------------------------------+----------------+ 
| Kedco plc                                  | +353 (0)21 467 | 
| Donal Buckley, Chief Executive / Gerry     | 0427           | 
| Madden, Finance Director                   |                | 
|                                            |                | 
+--------------------------------------------+----------------+ 
| Deloitte Corporate Finance - Nomad         | +44 (0)20 7936 | 
| Jonathan Hinton / David Smith              | 3000           | 
+--------------------------------------------+----------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 STRFMMGMVZGGGZM 
 

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