Nord Stream Provides Banks with Terms for Raising Loans
OREANDA-NEWS. August 05, 2009. Nord Stream, which plans to build a pipeline from Russia to Germany, in August, is to provide banks with the terms for raising loans to implement the project, a source in banking circles close to the transaction said, reported the press-centre of FINAM.
Preliminary negotiations over financing the project in which Gazprom owns a controlling interest began in February.
Dresdner, Royal Bank of Scotland and Societe Generale act as consultants to raise financing. Nord Stream plans to borrow 70% of the funds required for the project, with the remaining 30% to be provided by shareholders.
Export credit agencies SACE and Hermes are expected to join the financiers. Another source said in February that commercial banks will float around EUR1.5 bn.
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