Kier Group plc announced successful issue of notes in the US private placement market as well as having secured a loan issued under the UK Government's Funding for Lending Scheme (FfLS), arranged by Lloyds Bank Commercial Banking (Lloyds). On December 20, 2012, Kier issued 7-year and 10-year notes in aggregate principal amounts of £45 million and $28 million in four series, with coupons ranging from 4.2% to 4.8% per annum (Notes). The Notes will be used to refinance Kier's existing £17 million 6.4% notes and $22 million 6.2% notes, which will mature on February 19, 2013, and for continued investment in Kier's property development pipeline.

On January 11, 2013, Kier entered into a £30 million unsecured 4-year bilateral loan with Lloyds, which was provided under the FfLS and has been drawn down in full. The FfLS was introduced by the Government to stimulate investment in UK infrastructure and the loan provides Kier with competitively priced additional funding to be used in connection with its infrastructure and related projects.