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US private equity giant Apollo will provide £4.5bn in debt financing to support the UK’s Hinkley Point nuclear project, in a deal that will help ease financial pressures on the flagship development.
The investment grade financing will be provided as unsecured debt at an interest rate just below 7 per cent, people familiar with the matter said.
The funding could be used for other UK projects by French state-owned electricity group EDF, but Hinkley Point is expected to be the primary target for the debt package.
The financing meets a key funding gap for the nuclear project, which has suffered from consistent cost overruns. It was expected to cost £18bn and to be completed in 2025 but the estimated cost has swelled to almost £46bn and its start date pushed back to 2029.
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