Nord Stream advances with investor confidence

Nord Stream plans to raise €2.5bn ($3.3bn) by the end of the year and has already been approached by several banks, although it has yet to send out tender documents, writes Tom Nicholls

BANKS are showing robust interest in the second phase of financing of the Nord Stream gas pipeline, despite the slump in European gas demand and prices, says the company building the link. "Sometimes you get dips (in the gas market)," says a spokesman, but there will be a long-term need for gas and, in the long term, Nord Stream is more than interesting." Banks will be invited to bid "shortly", he adds. The venture's first phase of financing, raising €3.9bn in March, was 60% oversubscribed. The capital cost of Nord Stream, which will bring Russian gas direct to Germany, is projected at €7.4bn (including interest payments and various fees, total project costs are expected to amount to €8.8b