Kedco Plc (KED.LN), a cleantech group focusing on clean energy production in the U.K., Ireland and Eastern Europe, announced Wednesday that it has been offered a GBP9.9 million project finance facility by Ulster Bank Group, a subsidiary of the Royal Bank of Scotland plc (RBS.LN), to provide secured debt facilities in respect of the company's biomass electricity and heat generating plant in Newry, Northern Ireland.

MAIN FACTS:

-The facilities, which are subject to the satisfaction of certain pre-conditions 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 4 megawatt biomass electricity and heat generation plant located in Newry, County 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 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 U.K. government of its ongoing commitment to the Renewable Heat Incentive program.

-Shares closed Tuesday at 3.71 pence

-By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com
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