Investment firm Apollo provides £4.5 billion in private credit to French energy company EDF, facilitating a significant UK nuclear project
In a significant move for European infrastructure financing, Apollo Global Management has committed up to £4.5 billion in fixed-rate callable notes to Électricité de France (EDF) to support UK energy projects, with the most notable being the construction of the Hinkley Point C nuclear power station [2][4]. This deal marks the largest sterling-denominated private credit transaction to date and underscores Apollo’s role in addressing the substantial capital requirements of critical European infrastructure, especially amid budgetary constraints on the public sector [1][3].
**Key Aspects of Apollo’s Investment and Its Significance**
The £4.5 billion agreement is the largest private credit deal in the sterling market and marks the single largest capital funding transaction executed by EDF. It demonstrates Apollo’s capacity to provide bespoke, large-scale financing solutions to major European entities [1][2]. The investment is strategically targeted at European energy sovereignty by supporting projects that align with national and EU policies aimed at reducing reliance on Russian gas and Chinese technology, while advancing net-zero goals [3].
Hinkley Point C, with its 92-year operating license and government-backed offtake contracts at a fixed price (£92.50/MWh, indexed to inflation), offers a predictable, long-term revenue stream, making it attractive for institutional investors seeking stable returns [3]. The complexity and evolving needs of projects like Hinkley Point C—including scope changes and significant systemic importance due to national grid integration—highlight the adaptability and long-term commitment required, which private capital can address where public funds fall short [3][2].
The deal strengthens Apollo’s relationship with the French government and EDF, positioning the firm as a premier capital provider for leading European companies and further embedding Apollo in the European infrastructure financing landscape [1][2].
**Background and Partnerships**
The capital was issued under EDF's €50bn Euro Medium Term Note programme. Apollo Capital Solutions Europe B.V. advised on structuring and arrangement for the deal. Latham & Watkins and Kirkland & Ellis served as legal counsel for Apollo, while BNP Paribas advised EDF, and Hogan Lovells served as legal advisor to EDF [1].
Apollo’s involvement in this deal builds on its nearly 30-year track record of investing in French corporates, and the firm has backed global names such as Intel, AB InBev, BP, Sony, and Vonovia [5]. In recent years, Apollo has provided €2.5bn in high-grade capital to Air France-KLM across three transactions [1].
**Conclusion**
Apollo’s £4.5 billion investment in EDF’s UK projects, principally Hinkley Point C, is transformative for both the private credit market and European energy infrastructure development. It provides critical funding for high-profile, strategic projects and signals the growing importance of private capital in supporting long-term, government-prioritized infrastructure essential for energy security and decarbonization [2][3].
- The £4.5 billion investment by Apollo Global Management in Électricité de France (EDF) is the largest private credit deal in the sterling market, marking a significant transaction in European infrastructure financing.
- The deal also represents the single largest capital funding transaction executed by EDF, underscoring Apollo’s role in providing bespoke, large-scale financing solutions to major European entities.
- The investment in EDF's UK projects, particularly Hinkley Point C, signifies a strategic move by Apollo, as it aligns with national and EU policies aimed at advancing net-zero goals and reducing reliance on foreign technology.
