Nord Stream
Nord Stream

Nord Stream

Nord Stream  (2008-2011)

Key information: 

  • 55 billion cubic meters of gas pipeline laid on the bottom of the Baltic Sea from Russia to Germany
  • Sponsors: Gazprom, Wintershall, E.ON, Gasunie, GdF/Engie
  • Financial consultants: RBS, Commerzbank, Societe Generale, RPFB
  • Debt financing: EUR 6.4 bn, incl. Phase 1 EUR 3.9 bn (2008-2009) and Phase 2 EUR 2.5 bn (2010-2011)
  • Lenders: ECAs (Hermes, SACE), UFK, international commercial banks

Organizational and financing features:

  • Untied public financing (Germany) (UFK program – support for energy security)
  • ECA financing
  • Untied government financing
  • Phased commissioning – “expansion debt” regime
  • Foreign strategic investor
  • Limited recourse structure
  • 100% long-term contract for the transportation of gas under the formula «transport or pay» with «Gazprom export», performance guarantee from «Gazprom»
  • Artificial economics which guarantees the profitability of the project and provides the possibility of increasing the tariff to meet DSCR requirement
  • Completion guarantee from Sponsors
  • Revision of Phase 1 costs
  • Untied financing UFK (Germany) (Energy Security Program)
  • Refinancing of commercial loans with project bonds
  • The deal was closed at the time of financial crisis in 2009, when the OECD Russia country rating was downgraded
  • Refinancing of commercial loans with project bonds in 2017

Nord Stream – financing structure