Nord Stream in $5.6 billion hunt

Preparing financing: for the Nord Stream pipe

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By News wires

 26 August 2009 10:16 GMT

The Nord Stream gas pipeline group has asked banks to bid on a €3.9 billion ($5.6 billion) financing to back the scheme that will pipe Siberian gas to Europe under the Baltic Sea, according to reports.

The financing includes a €3.1 billion, 16-year loan facility that will be covered by export credit agencies Hermes and Sace, as well as by Germany under its Untied Loan Guarantee Programme, called UFK, which covers political and commercial risk similar to Hermes, banking sources told Reuters.

There is also an €800 million, 10-year uncovered commercial loan, the bankers said.

Banks are bidding on the pricing of the loan, which is expected to be finalised in October, the sources said.

Dresdner, Royal Bank of Scotland, SG and Unicredit are advising on the financing, one of…

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