Nord Stream has been awarded the prestigious Infrastructure Journal (IJ) Oil & Gas Deal of the Year Award 2010 at an awards ceremony in London. The Award recognises Nord Stream’s achievement in raising 3.9 billion euros in the first phase of the project’s financing during the challenging financial market conditions of 2009/10.
Nord Stream faced tough competition in the award category for Deal of the Year from energy companies in Russia, Saudi Arabia and Papua New Guinea. Infrastructure Journal noted the strength of Nord Stream’s successful Phase I financing which was underpinned by the support of 26 commercial banks as well as the ECAs (Export Credit Agencies), SACE, HERMES and UFK that supplied the 3.9 billion euros. The positive response from lenders meant that Nord Stream was approximately 60 percent oversubscribed for the 3.9 billion euro funding
Nord Stream’s Chief Financial Officer Paul Corcoran said: “We are delighted that Nord Stream has been recognised by IJ for its contribution to European energy infrastructure and especially to energy security in the European Union. The success of Nord Stream reflects the strong foundations of the project and the support for it at the EU level.”
Nord Stream recently completed Phase II financing in March 2011. The completion of financing paves the way for the construction of Line 2. The project financing for Phase II amounts to 2.5 billion euros and the company is the first of a number of European gas pipeline projects to secure the necessary financing.
Line 1 of the Nord Stream Pipeline is due to deliver gas by autumn 2011 with construction on Line 2 due to start in May. Running 1,224 kilometres from Vyborg in northern Russia through the Baltic Sea to Lubmin in northern Germany, Nord Stream offers a new energy supply route to Europe.
Advisers working on the Phase I deal included RBS, Commerzbank and Société Générale providing financial advice. White & Case and Clifford Chance gave legal support.
Source: Nord Stream, April 5, 2011;