Kier is launching a rights issue in a bid to raise £264m to pay down debts.
The contractor confirmed the move in a Stock Exchange announcement on Friday which saw its share price fall 15%.
Kier said it needs the money because banks are becoming increasingly nervous of the construction sector and subcontractors need to be paid quicker.
The contractor said its net debt as at 31 October 2018 was £624m.
Haydn Mursell, Chief Executive of Kier Group said: “There has been a recent change in sentiment from the credit markets towards the UK construction sector, with various lenders indicating that they will be reducing their exposure to the sector.
“This has led to lower confidence among other stakeholders and an increased focus on balance sheet strength.
“The Rights Issue is intended to address these issues, better position Kier to continue to win new business and further strengthen our market leading positions.”
from Construction Enquirer http://www.constructionenquirer.com/2018/11/30/rising-debts-force-kier-to-launch-264m-rights-issue/
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