Apollo to pump £4.5 billion into UK nuclear project in major private loan deal

The US asset management giant Apollo will provide £ 4.5 billion ($ 6 billion) loans to Hinkley Point C, the UK nuclear project Hinkley Point C while the private credit market is hunting for European opportunities.

The agreement first Financial times It is supported by two sources speaking to CNBC on Friday and due to the sensitivity of the issue.

A source said that Apollo will provide an investment class debt financing package at an interest rate of less than 7%for the project.

Apollo and Hinkley Point C, the majority owner Edf avoided commenting.

According to one of the sources, lending to EDF unsecured will not be connected to the UK’s nuclear project. However, it is believed that funds are allocated for Hinkley Point C. Credit rating agency Fitch, “EDF Hinkley Point C to finance the UK sub -group injected equality monthly” said. The rating agency also said EDF owes 6.7 billion euros from March to the British subsidiary.

The Apollo agreement would be among the largest private capital investments in the UK National Interest Project.

The completion of two nuclear reactors in the Hinkley Point C, which is the first nuclear power plant to be built in the UK over the years, was delayed several times and swollen with the budget.

In the late 2023, the Chinese General Nuclear Power Corp (CGN) stopped financing for Hinkley Point C at the end of 2023 among the tensions related to the British government, which took over the company’s shares in Fightwell, another British nuclear project. This left EDF for payment to complete the project alone, for an invoice estimated At the beginning of 2024, more than £ £ more than £. The first reactor is expected to be online in 2029.

The CGN’s participation has examined the public on concerns about a wider participation in China’s critical British infrastructure.

While nuclear projects remain controversial in Europe, the current British government oral To confirm the construction of more plants at home. Hinkley Point C is expected to produce electricity for about six million homes when completed.

In the meantime, private markets, energy and transportation to housing and data centers in the next decade in the next decade to benefit from an expected explosion in European infrastructure projects are followed. Apollo Global Management Chairman Jim Zelter said he had the opportunity to put 100 billion dollars on the ground in Germany for the next decade.

– Lily Meckel and Ganesh Rao from CNBC contributed to this story.