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