LONDON Oct 21 Banks advising Nord Stream group
on its 3.9 billion euros ($5.84 billion) financing are expected
to receive final pricing bids and commitments from lenders this
week, banking sources close to the deal said.
The financing, which is being advised by Commerzbank, Royal
Bank of Scotland, SG and Unicredit, backs two pipelines bringing
Siberian gas to Europe under the Baltic Sea.
The financing has raised over 15 percent more than the
target amount after lenders showed an unexpected level of
interest in larger tickets of around 300 million euros, two
As previously reported, the total financing includes a 3.1
billion euros, 16-year facility that will be 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
Pricing on the deal is likely to remain at the original
pricing model of around 400 bps on the commercial tranche and
around 200 bps on the covered financing, banking sources close
to the deal said.
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 Alasdair Reilly & Christopher Mangham; Editing by