The Électricité de France (EDF) group has reached an agreement with the American investment fund Apollo Global Management to raise up to £4.5 billion through unlisted bond issuances. This funding will allow EDF to secure a substantial part of the financing needed for the British nuclear project Hinkley Point C, located in Somerset. The agreement consists of three issuance tranches, with the first tranche of £1.5 billion scheduled for issuance on June 26. EDF can subsequently request the two remaining tranches in 2026 and 2027 according to its financial requirements.
Continuous increase in project costs
Initially estimated at around £18 billion at its launch in 2016, the total cost of Hinkley Point C has now risen to between £31 and £34 billion. This increase is primarily due to repeated technical delays, as well as significant inflation since 2015. Adjusted to current economic conditions, the estimated total cost now reaches between £41 and £46 billion, equivalent to approximately €47.9 to €53.74 billion. This budget overrun has raised growing concerns among financial authorities and stakeholders involved in the project.
The Hinkley Point C project involves the construction of two European Pressurized Reactors (EPR). EDF is the majority shareholder with a 72.6% stake, while the Chinese partner, China General Nuclear Power Group (CGN), owns the remaining 27.4%. Since 2023, CGN has clearly indicated that it will no longer participate in additional financing related to budget overruns. This stance prompted EDF to actively seek alternative funding sources to cover these unforeseen costs.
Political and financial concerns
In April, Aurélie Trouvé, Chair of the French National Assembly’s Economic Affairs Committee, and Charles de Courson, the General Budget Rapporteur, publicly described the Hinkley Point C project as a “financial abyss.” They expressed concerns about the lack of prior consultation of the French Parliament regarding renewed financial commitments by EDF, now fully state-owned. Earlier in 2025, the French Court of Auditors called for clarification of the risks associated with the EPR reactor program before undertaking any major public investment.
Meanwhile, Marc Ferracci, French Minister of Energy, called upon the British government to assume its financial responsibilities related to the project’s overruns. This position came amid tense relations resulting from the partial withdrawal of Chinese partner CGN from the original funding commitments. The French Ministry of Energy emphasized that this issue would be firmly addressed during an energy summit held in London, stressing the need for balanced financial responsibilities among project partners.
The agreement with Apollo Global Management marks a significant strategic step for EDF in continuing its UK project, ensuring immediate and predictable liquidity over three years. It partially addresses financial concerns raised by authorities and regulators, though it leaves unanswered questions regarding the long-term future financing of Europe’s nuclear energy program.
