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US private equity giant Apollo will provide £4.5 billion in debt financing to support the UK’s Hinckley Point nuclear project in a deal that will help ease financial pressure on flagship development.
Investment-grade funding is offered as unsecured debt at interest rates below 7%, people familiar with the issue said.
The funds can be used for other UK projects by the French state-run power group EDF, but Hinkley Point is expected to be a major target for the debt package.
Funding meets key funding gaps for nuclear projects that are struggling with consistent cost overruns. It cost £18 billion and was expected to be completed in 2025, but the estimated cost has risen to almost £460 billion with the start date returning in 2029.
This is a developing story
