EDF Secures £4.5 Billion in Unlisted Bonds with Apollo Partnership

EDF has signed an agreement with Apollo to issue up to £4.5 billion of unlisted bonds. The bond will be issued in three tranches, with the first tranche of £1.5 billion to be issued on June 26, 2025. This transaction enables EDF to secure a substantial part of its sterling financing for UK investments, including the Hinkley Point C project. The expected rating of the bond is BBB / Baa1 / BBB+. EDF regularly assesses its financing needs and monitors financial markets for opportunities to issue senior or hybrid debt and other types of securities.

EDF (Électricité de France), a leading global energy company, has signed an agreement with Apollo Global Management to issue up to £4.5 billion in unlisted bonds. The bond will be issued in three tranches, with the first tranche of £1.5 billion scheduled for issuance on June 26, 2025. This transaction is part of EDF's broader strategy to secure substantial sterling financing for its UK investments, including the highly anticipated Hinkley Point C nuclear power station project [1].

The agreement allows EDF to leverage the private credit market for its financing needs, providing an alternative to traditional debt instruments. The bond is expected to carry a rating of BBB / Baa1 / BBB+ from S&P, Moody's, and Fitch respectively, reflecting the company's stable financial position [1]. EDF has an option to issue the remaining tranches in 2026 and 2027, further securing its financing needs over the next three years.

The deal comes at a critical time for EDF, as it faces significant cost overruns and delays in completing the Hinkley Point C project. The project, which was initially expected to be completed by 2025 at a cost of around £18 billion, is now estimated to exceed £46 billion and is not expected to come online until 2029 [3]. The private credit market's involvement in funding such large-scale infrastructure projects underscores its growing role in providing long-duration capital for major projects.

Apollo Global Management, a U.S.-based private equity giant, has been actively seeking opportunities in the European infrastructure market. The company's involvement in the Hinkley Point C project is part of its broader strategy to capitalize on the expected boom in European infrastructure projects over the next decade [2].

EDF's regular assessment of its financing needs and active monitoring of financial markets for opportunities to issue senior or hybrid debt and other types of securities is a testament to its commitment to financial stability and growth [1]. The company's diverse generation mix, which includes nuclear and renewable energy sources, positions it well to meet the increasing demand for low-carbon energy.

This deal highlights the increasing maturity of the private credit industry and its growing role in funding large-scale infrastructure projects. As private markets continue to seek opportunities in sectors requiring long-duration capital, the UK's Hinkley Point C project serves as a prime example of how such financing can be utilized to drive economic growth and support the energy transition.

References:
[1] https://www.globenewswire.com/news-release/2025/06/20/3102854/0/en/Edf-EDF-announces-the-signature-of-an-agreement-with-Apollo-for-the-issue-of-up-to-4-5-billion-of-unlisted-bonds.html
[2] https://www.nbcbayarea.com/news/business/money-report/apollo-to-supply-4-5-billion-loan-to-uk-nuclear-project/3897108/
[3] https://www.cityam.com/us-private-equity-giant-to-back-hinkley-point-c-with-4-5bn-loan/