BNP Paribas, Italian export agency back UK-Norway link

The planned 1.4-GW interconnector between the UK and Norway will get USD 519 million (EUR 496m) of export financing from BNP Paribas Corporate & Institutional Banking (CIB) and Italian companies SACE and SIMEST.

More specifically, the credit facility, announced on Friday, is in support of the works and supply orders awarded to Italian cable company Prysmian SpA (BIT:PRY) as part of the North Sea Link project. It will be extended to a unit of National Grid Plc Group (LON:NG).

SACE and SIMEST together form the Italian export and internationalisation hub of Cassa Depositi e Prestiti Group. They say this is the largest transaction agreed in this sector in Europe with coverage from an export credit agency.

BNP Paribas CIB is the sole structuring bank and agent for the credit line, supported by a pool of international banks and the two Italian firms.

The EUR-2-billion (USD 2.1bn) subsea interconnector is planned to extend over 730 km to connect the UK and Norway. It will boost security of supply and allow the two countries to share renewable energy generation. The high voltage subsea cables would stretch from Kvilldal in Norway to Blyth in the UK.

(USD 1 = EUR 1.05)

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