Nord Stream - Costs and Financing

Costs and Financing

According to Gazprom, the costs of the onshore pipelines in Russia and Germany are around €6 billion. The offshore section of the project is expected to cost €8.8 billion. 30% of the financing was raised through equity provided by shareholders in proportion to their stakes in the project, while 70% came from external financing by banks.

There are two tranches. The first tranche for a €3.9 billion includes a 3.1 billion, 16-year facility covered by export credit agencies and a €800 million, 10-year uncovered commercial loan to be serviced by earnings from the transportation contracts. A €1.6 billion is covered by French credit insures company Euler Hermes, a €1 billion by the German Untied Loan Guarantee Programme UFK, and a €500 million Italian Export Credit Agency SACE SpA. Loans to be provided by 26 commercial banks. Crédit Agricole is documentation bank and bank facility agent. Société Générale is intercreditor agent, Sace facility agent, security trustee and model bank. Commerzbank is Hermes facility agent, UniCredit is UFK facility agent, Deutsche Bank is account bank and Sumitomo Mitsui Banking Corporation is technical and environmental bank. The financial advisers were Société Générale, Royal Bank of Scotland (ABN Amro), Dresdner Kleinwort (Commerzbank), and Unicredit. The legal adviser to Nord Stream was White & Case and legal adviser for the lenders was Clifford Chance.