US asset management firm Apollo has agreed to provide up to £4.5bn in funding through bonds issued by Électricité de France (EDF) to support the development of the Hinkley Point C nuclear power station in the UK.
In a statement, Apollo said that its affiliates, funds, and strategic accounts would invest in fixed-rate callable notes issued by EDF under €50bn Euro Medium Term Note (EMTN) programme.
Apollo Partner Jamshid Ehsani said: “This is the largest-ever capital funding transaction executed by EDF and the largest private credit transaction in the sterling market.”
EDF confirmed the agreement, noting that the bonds will be issued in three tranches, each with a maximum maturity of 12 years.
The first tranche, totalling £1.5bn, is set for issuance on 26 June 2025. The company has the option to issue the remaining tranches in 2026 and 2027.
The Hinkley Point C project, controlled and financed by EDF, is the UK’s first new nuclear plant in more than two decades.
It will feature two new nuclear reactors and will generate enough electricity for around six million homes.
The project has experienced delays and budget increases. The China General Nuclear Power Corp (CGN) ceased its funding for the project in late 2023 due to tensions with the British government, reported CNBC.
The plant is expected to begin operations in 2029, with costs estimated between £31bn and £34bn.
Recently, the British government announced an additional investment of £14.2bn for the construction of the Sizewell C nuclear plant in southeast England, marking another significant nuclear development in the country.
