Nord Stream has approached its lenders seeking an amendment to the pricing of the 3.9 billion euros Phase I project finance facilities in order to ensure a more favourable financing package for the overall project. The purpose is to bring that pricing into line with the pricing of the 2.5 billion euros raised for the Phase II facilities, which were successfully closed earlier this year.

Nord Stream undertook a detailed sounding of its relationship banks and received strong expressions of support for the repricing exercise. “We are pleased that banks recognise the strength and stability of the Nord Stream project, with its strong shareholder backing from some of Europe's top energy companies,” says Nord Stream Financial Director Paul Corcoran. The project is a joint venture of OAO Gazprom, BASF/Wintershall Holding AG, E.ON Ruhrgas AG, GDF SUEZ S.A. and N.V. Nederlandse Gasunie.

Physical construction of Line 1 of the Nord Stream Pipeline, including its connection to the Russian and German networks, has been completed exactly on schedule. Construction of Line 2 is advancing apace.

The present amendment request will harmonise the pricing between the two financings phases, which share identical risk. It comes at a time when such risk is being further reduced by the positive construction progress. Reflecting market conditions, Nord Stream will amend the interest margins of the Commercial and Hermes/UFK (German Government-guaranteed) tranches, but will not change the pricing of the SACE (Italian Government-guaranteed) tranche.