Nord Stream today confirmed it has agreed repricing arrangements with its relationship banks for the 3.9 billion euro Phase I project finance facilities.
Nord Stream undertook this exercise in order to bring Phase I pricing into line with the pricing it achieved for the 2.5 billion euros raised for the Phase II facilities which were closed earlier this year. Phase I funding had originally been signed in March 2010.
Commenting on the success of the repricing process, Nord Stream Financial Director Paul Corcoran said: “ We are delighted once again to receive such strong support from the banks who recognise the sound commercial structure of this project, its long term stability, as well as the strength and quality of shareholder backing from some of Europe’s top energy companies .” The project is a joint venture of OAO Gazprom, BASF SE/Wintershall Holding GmbH, E.ON Ruhrgas AG, GDF SUEZ S.A. and N.V. Nederlandse Gasunie.
Physical construction of Line 1 of the Nord Stream Pipeline, including its connection to the Russian and German networks, has been completed on budget and on schedule. Construction of Line 2 is advancing ahead of schedule.
This amendment will be executed before the end of the month and will harmonise the pricing between the two financings phases. Given the excellent construction progress, the risk profile of Phase I is significantly reduced. Nord Stream will amend the interest margins of the Commercial, Hermes and UFK (untied loan guarantee of the German Government) tranches, but will not change the pricing of the SACE (Italian Government-guaranteed) tranche.
[mappress] Source: Nord Stream, October 27, 2011