Banks offer Kedco GBP 9.9m loan for biomass facility
(ADPnews) - Nov 3, 2010 - Irish green-energy group Kedco (LON:KED) said today that Ulster Bank Group, part of The Royal Bank of Scotland Group plc (LON:RBS), had offered to lend GBP 9.9 million (USD 16m/EUR 11.4m) for the completion of Kedco's 4-MW biomass plant in Newry in Northern Ireland.
The project financing, which is subject to some pre-conditions, will include a term loan, a working capital and performance bond and other facilities. Kedco expects to strike the binding agreements at the beginning of 2011.
The total investment in the Newry biomass electricity and heat generation facility is estimated at GBP 15 million, with GBP 6 million already spent on the project. It is expected to fetch annual earnings before interest, tax, depreciation and amortisation (EBITDA) of some GBP 2 million from power sales. The construction of the plant is almost complete, Kedco said.