IPSA.L Regulatory News (IPSA)

15 Jun 2006 07:08

IPSA Group PLC15 June 2006 15 June 2006 IPSA Group plc ('the Company' or 'IPSA') Bank loan facility agreed The Company announces that on 13 June 2006 it signed a US$4 million bridgingloan facility agreement with Standard Bank plc. The funds are availablefor immediate draw down and will be used as a standby facility in the event thatthey are needed to fund construction cashflow for the Newcastle Project whilethe Company now proceeds to develop its two new power projects at Coega andElitheni. The facility replaces the interim facility of US$4 million providedby Independent Power Corporation plc which was announced on 6 March 2006. Thisinterim facility has now been cancelled. Peter Earl, CEO of IPSA, said: "Newcastle is progressing well and we are now inadvanced negotiations to bring forward the second 50 MW phase of its development. This facility will help us to achieve revenue generation atNewcastle in the second half of 2006. The facility also provides us with the funds to progress the initial developmentof our Coega and Elitheni projects which have the potential to generatehighly attractive returns for our shareholders. These two large projects will gosome way to reducing the current power problems in South Africa, which donot appear to be getting any better. Power cuts are still occurring in both CapeTown and Johannesburg, and with the South African economy now growing at6 per cent in terms of GDP, South Africa seriously needs new plant capacity." For further information contact: Peter Earl, CEO, IPSA Group plc 020 7793 7676 Mark Froggatt, Noble & Company Limited 020 7763 2200 Allan Piper, First City Financial 07736 064982 020 7436 7486 This information is provided by RNS The company news service from the London Stock Exchange