8/14/2019 Interview Paul Cocoran - Fin an Cement de
Nord-Stream
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Conclusion of Phase I financing demonstrates the genuine support
for a
project that will provide Europe with reliable and secure
supplies of natural gasfor decades to come. Nord Stream Managing
Director, Matthias Warnig and
Financial Director, Paul Corcoran discuss what this means to
Nord Stream.
What does the signing of the Phase I financing mean to the
project?
Matthias Warnig: The successful conclusion of the financing
marks a pivotalmoment in Nord Streams development and takes the
project a step closer tobecoming reality. Nord Streams aim since
the beginning has been clear to provideEurope with an additional
source of energy. The Phase I financing worth 3.9 billioneuros
shows the strong support for the project from the financial markets
and pavesthe way for construction to start in April 2010.
How do you think the Phase I financing will affect perceptions
of the project?Matthias Warnig: The closure of the Phase I funding
is of huge symbolicimportance. It shows that investors are
confident that the pipeline will be built onschedule and that we
will start transporting gas when we said we would. It alsosignals
the end of the preparatory stage and the beginning of the
construction phase.
To customers and consumers it shows that Nord Stream is becoming
a reality and in2011 will be transporting natural gas directly to
households all over Europe.
How difficult was it to raise project finance in such a
depressed projectfinancing market?
Paul Corcoran: Whilst market conditions were undoubtedly tough,
we wereconfident from the outset that Nord Stream was an attractive
financial investment andthat we would be able to raise the required
Phase I sum of 3.9 billion euros. In fact,Nord Stream was 60
percent oversubscribed for Phase I financing, underlining
thepositive level of support for the project. The overall budget
figure of 7.4 billion euroshas been based on contracts for pipe
production, logistics and pipe laying, which arethe main cost
factors for offshore pipeline projects.
What kind of funding does Phase I entail?Paul Corcoran: Phase I
funding brings in 3.1 billion euros from covered finance,
forexample, bank loans supported by government export and other
guarantees, as wellas 800 million euros uncovered commercial bank
tranche. The project finance issupported by participating ECAs
(Export Credit Agencies) the highly respectedSACE and Hermes. In
addition to this, Nord Stream has support from the untied
loanprogramme provided by the German government. There are a total
of 26 internationalbanks involved in the deal.
When will the Phase II financing start?
Paul Corcoran: Phase II financing is scheduled to start later on
this year with closuretargeted for late 2010. The Phase II
financing a mounts to some 2.5 billion euros. Theoverall financing
fits well with the construction schedule. Construction of the
secondline will begin in 2011 and is due to be completed in 2012
when both lines will beoperational and transporting gas. Nord
Stream wo uld like to thank all the banks thatcontributed to the
successful completion of Phase I financing. As we pass this
majormilestone, Europe takes a step to a more secure energy
future.
Source
:https://e-facts.nord-stream.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=1852&coid=45&lang=EN
