Refinancing & Expansion of Funding Facilities

For immediate release 27 February 2013

Energy Assets Group plc

("Energy Assets" or the "Group")

Refinancing and Expansion of Existing Funding Facilities

Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial ("I&C") gas metering services in the UK[1], is pleased to announce the refinancing of £24m of existing debt held with Lombard

North Central plc ("Lombard"), the asset finance division of The Royal Bank of Scotland Group, together with a

further £20m extension bringing the total facility to £60m. This will enable the continued growth of the business and will bring significant interest savings to the Group going forward.

Refinancing of £24m of existing debt

A revised pricing structure on this debt has been agreed resulting in a substantial interest cost reduction from an average rate of 8.3% to a fixed rate of 5.27% from 26 February 2013. These savings amount to in excess of £0.5m in the first full year. 

The existing debt, which was originally drawn down between 2009 and 2011 with a ten year repayment term, will be refinanced into one loan repayable over the remaining term of eight years under a similar structure.

Expansion of funding facility

In conjunction with the refinancing exercise, Energy Assets has also taken the opportunity to further extend the relationship with Lombard, adding an additional £20m of debt funding to the current facility on improved terms, resulting in significant headroom of £24m. From today, future drawdowns will attract a more favourable interest rate of 3.375% plus LIBOR, with a ten year repayment profile.

Commenting on the recent refinancing activities, Chief Executive Phil Bellamy-Lee said:

"I am delighted to be able to announce this new financing arrangement which will bring with it immediate cash benefits to the Group. 

The increased facility and the renegotiation of interest rates applied to both existing and future facilities will not only significantly reduce funding costs but will also put the Group in a strong position to continue to increase its installed meter base and undertake potential new contract awards that are currently being pursued.

We are pleased to be continuing our strong and valued relationship with Lombard, who have been a prominent provider of funding to the Group over the past few years. We look forward to further strengthening this relationship into the future as we continue to grow our business and cement our position as the leading independent meter asset manager."

Gary Leith, Managing Director of Lombard Corporate Asset Finance, added:

"Energy Assets has impressed us with its development over a relatively short period of time. This facility increase, which we are proud to have supported, will further help the Group achieve its growth aspirations in the advanced meter market.

At Lombard, we believe that continued investment remains a critical factor if UK businesses are to achieve their growth aspirations. Our commitment to helping organisations, such as Energy Assets, secure the right funding remains strong and we will continue to work closely with businesses to help them reap the benefits of this."

Enquiries

For further information visit www.energyassets.co.uk, where this statement is also available, or contact:

Notes to Editors

Energy Assets

Energy Assets provides gas metering and related services in the I&C segment of the UK gas market and is the largest independent provider of I&C gas metering services in the UK (by number of meters under management). The Group offers gas suppliers and end-user consumers of gas a broad spectrum of metering services from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related gas infrastructure works and the collection and provision of gas consumption data through the Group's Siteworks and AMR divisions.

Lombard

As the largest asset finance provider in the UK and voted Best Leasing & Asset Finance Provider by Business Moneyfacts from 2009-2012, Lombard provides various forms of asset finance to businesses of almost any size - from SMEs to large multi-national corporates. Products range from Hire Purchase, Finance Lease, Operating Lease, to Sale and Leaseback, as well as multi-specialist asset finance products specific for the marine and aviation sectors, and specific wholesale and stocking funding for distributors and dealerships.

Having celebrated its 150th anniversary in 2011, Lombard is headquartered in Redhill, Surrey, with an extensive network of business centres situated throughout the UK, and is an appointed representative of The Royal Bank of Scotland plc, which is authorised and regulated by the Financial Services Authority.