Apollo Nears £5 Billion Debt Financing for UK Hinkley Point Nuclear Project

Apollo Global Management is set to provide a significant loan, reportedly between £4.5 billion and £5 billion ($6 billion to $6.7 billion), to support the Hinkley Point C nuclear power station project in the UK, according to multiple reports. This financing, structured as unsecured, investment-grade debt with an interest rate just under 7%, aims to address the project's substantial funding gap following China General Nuclear Power Group's withdrawal in 2023. The Hinkley Point C project, initially estimated to cost £18 billion and to be completed by 2025, now faces a revised cost of nearly £46 billion and a delayed start date of at least 2029 due to cost overruns, labor shortages, and other challenges. Apollo's involvement could reduce EDF's reliance on the UK corporate bond market and represents one of the largest private capital investments in a UK national infrastructure project. EDF, the French state-owned energy firm leading the project, and Apollo have declined to comment on the deal. Once completed, the plant is expected to provide around seven percent of the UK's electricity, powering approximately six million homes and contributing to the nation's net-zero 2050 goals.