Gaztransit (1999-2000)

Key information:

  • Expansion of the Trans-Balkan gas pipeline into Ukraine
  • 2002: EUR 97 mln. Creditors: EBRD, Black Sea Trade & Development Bank, HVB, ABG
  • 2001: EUR 250 mln. Creditor: HypoVereins Bank
  • Project in the former USSR/CIS

Organizational and financing features:

  • Loans secured by the existing independent export contract
  • Completion guarantees of construction and contract performance
  • Project company, equity and asset pledges
  • 75% – external debt, 25% – equity
  • Transport contract under the formula «ship or pay» (100% Gazprom)
  • Tariff for operating expenses, debt servicing and return on capital – by-pass of regulatory restriction of tariff by adding artificial compression fee
  • Dividend payments not before full debt repayment