LONDON, March 12 The Nord Stream gas pipeline
group and banks are in the process of signing documentation for
a 3.9 billion euro ($5.3 billion) financing, sources close to
the deal said.
Signing on a deal to back Nord Stream, which will pipe
Siberian gas to Europe under the Baltic Sea, will complete on
Tuesday, one of the sources said.
As previously reported, the total financing will be provided
by 27 banks. It includes a 3.1 billion euros, 16-year facility
covered by export credit agencies Hermes and Sace, as well as by
the Federal Republic of Germany under its Untied Loan Guarantee
Programme called "UFK" which covers political and commercial
risk similar to Hermes. [ID:nL2500093]
The covered loan is split between a 1.6 billion euros Hermes
loan, a 1 billion euros UFK loan and a 500 million euros Sace
There is also an 800 million euros, 10-year uncovered
The commercial loan pays a margin of 275 basis points (bps)
over EURIBOR pre-completion, 430 bps until year seven and 450
bps thereafter, banking sources told TRLPC in November. The
commitment fee is 110 bps. [ID:GEE5AM2BP]
The Hermes loan pays a margin of 160 bps, the UFK loan pays
180 bps and the Sace loan pays 165 bps. The commitment fees are
65 bps, 75 bps and 65 bps, respectively.
Credit Agricole CIB is documentation bank and bank facility
agent. SG is intercreditor agent, Sace facility agent, security
trustee and model bank. Commerzbank is Hermes facility agent,
UniCredit Bank (HVB) is UFK facility agent, Deutsche Bank is
account bank and SMBC is technical/environmental bank.
The debt covers 70 percent of the project cost, while the
shareholders will provide the remaining 30 percent, the Nord
Stream consortium said on its website.
The Nord Stream consortium, which involves Russian gas
export giant Gazprom (GAZP.MM), Germany's E.ON (EONGn.D) and
Dutch Gasunie, aims to have the twin pipeline up and running in
2011 and 2012, bringing 55 billion cubic metres of Russian gas
to Germany and further to other European Union countries each
(Reporting by Christopher Mangham; Editing by Dan Lalor and
($1 = 0.7369 euro)