Financial Appraisal Deal Brings Nabucco Closer to Securing Funding
The shareholders and project company of Nabucco have singed a mandate letter with three international financial institutions for the appraisal of the future natural gas transit pipeline, which has been hailed as a key step towards its successful construction.
The signing of the mandate letter of the shareholders and Nabucco Gas Pipeline International with the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and IFC - a member of the World Bank Group, marks the start of the appraisal process of the Nabucco project, a required step towards a potential financing package of up to EUR 4 B, the project company says in a statement Monday.
The potential financing package will consist of up to EUR 2 B from the EIB, up to EUR 1.2 B from the EBRD (up to EUR 600 M for EBRD's account and up to EUR 600 M to be syndicated to commercial banks) and up to around EUR 800 M from IFC (up to EUR 400 M for IFC's account and up to EUR 400 M to be syndicated to commercial banks).