Apollo Reportedly In Talks To Lend $6.7B To Rescue UK’s Hinkley Point C Nuclear Project

Apollo Global Management (APO) is reportedly close to finalizing a financing deal with Electricite de France (EDF) to provide up to £5 billion ($6.7 billion) in debt financing for the long-delayed Hinkley Point C nuclear power station in the UK.

Apollo’s stock was trading flat in pre-market trade on Friday following the reports. However, retail sentiment on Stocktwits rose to ‘bullish’ territory from ‘neutral’ a day ago. 

According to a report from the Financial Times, the funding is aimed at closing the significant financing gap for the Somerset-based project, which suffered repeated cost overruns and delays after China General Nuclear Power Group’s (CGN) exit in 2023. 

It added that the project was initially expected to cost £18 billion and begin operating this year. However, Hinkley Point C's estimated cost has risen to nearly £46 billion, with its start date now pushed back to at least 2029.

The proposed financing package from the U.S. private capital group would be structured as unsecured, investment-grade debt, with an interest rate just under 7%, the Financial Times said. Bloomberg noted that Apollo had previously explored a mix of equity and debt, but negotiations are now focused on long-term conventional loans.

The new debt package would give EDF access to Apollo’s pool of private capital, potentially reducing the utility’s reliance on the UK’s sterling-denominated corporate bond market, the report said.

EDF has been under pressure to secure alternative financing since CGN withdrew in 2023. CGN’s exit came after it was removed from the Sizewell C project amid growing U.K. concerns over Chinese state-linked investment in critical infrastructure.

Apollo’s stock has fallen more than 20% this year but gained 14% over the last 12 months. 

(Exchange rate: £1 = $1.35)

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