Apollo commits £4.5bn to EDF in UK nuclear financing deal, setting sterling private credit record

Apollo Global Management (NYSE: APO) has committed up to £4.5 billion in structured financing to Électricité de France (EDF), marking the largest-ever sterling-denominated private credit transaction. Announced on June 20, 2025, the investment provides capital via fixed-rate callable notes under EDF’s €50 billion Euro Medium Term Note (EMTN) program. The proceeds are designated primarily for critical UK-based energy infrastructure projects, most notably the long-delayed and capital-intensive Hinkley Point C nuclear power station in Somerset.

The landmark deal highlights Apollo’s accelerating push into European infrastructure finance and showcases the firm’s ability to execute bespoke transactions at sovereign-scale volumes. According to Apollo Partner Jamshid Ehsani, the transaction reflects a deepening partnership with EDF and the French government, positioning Apollo as a premier capital provider for energy transition initiatives across Europe. EDF, a state-owned French utility and a pillar of European electricity generation, is depending on such private capital infusions to maintain momentum across its decarbonization and energy sovereignty objectives.

Why does EDF need £4.5 billion in private credit funding for UK nuclear infrastructure in 2025?

Électricité de France has been under sustained financial pressure from project delays, inflationary cost increases, and rising interest rates, especially surrounding Hinkley Point C. Originally budgeted at around £18 billion, the project has seen its expected outlay surge past £30 billion. In 2025, with completion still years away and operational ramp-up unlikely before 2030, EDF has shifted its funding strategy toward more diversified and flexible capital sources.

Sterling-denominated private credit, particularly callable notes with long-term fixed rates, allows EDF to sidestep the volatility of sovereign bond issuance and gain execution certainty in a constrained European capital market. Institutional investors familiar with the UK infrastructure landscape have noted that nuclear energy, while politically sensitive, has regained favor in national energy planning amid supply concerns, climate targets, and the fallout from geopolitical disruptions in global gas markets. That context makes large-scale nuclear projects more palatable to private lenders seeking high-grade, asset-backed exposures with long duration.

Apollo’s ability to structure a deal of this magnitude in sterling underlines both the appetite for yield among global investors and the growing trust in EDF’s creditworthiness despite fiscal and regulatory complexities.

What makes Apollo’s financing structure unique in the European energy and private credit markets?

The Apollo–EDF agreement leverages fixed-rate callable notes, a format increasingly favored by borrowers seeking both rate visibility and optionality. For EDF, this approach enables prepayment flexibility—essential for a project whose funding timeline may shift with construction progress or future regulatory changes. Unlike syndicated loans or public bonds, callable notes allow EDF to manage interest rate exposure while retaining the ability to restructure its capital stack as market conditions evolve.

Apollo’s Capital Solutions Europe B.V. provided structuring and arrangement services, ensuring institutional-grade customization. The transaction also saw legal support from Latham & Watkins LLP and Kirkland & Ellis LLP on Apollo’s side, with BNP Paribas and Hogan Lovells LLP advising EDF. Industry observers view this as a signal that private credit providers are willing and able to compete with investment banks in complex capital market deals once reserved for sovereign or quasi-sovereign borrowers.

This transaction follows Apollo’s established pattern of deploying large-scale, high-grade capital solutions to major European corporates. The asset manager has previously committed over €2.5 billion in similar structures to Air France-KLM and maintains a European portfolio featuring Intel, BP, Vonovia, and AB InBev. Institutional investors interpret the EDF deal as further evidence that Apollo’s bespoke capital model is scaling effectively in Europe’s core energy and industrial sectors.

How does Apollo’s EDF transaction reflect broader trends in global infrastructure financing in 2025?

Private credit continues to displace traditional bank syndications and public debt as the preferred funding vehicle for long-term infrastructure assets, particularly those with politically strategic or climate-aligned outcomes. Analysts tracking institutional flows suggest that the illiquidity premium attached to private infrastructure debt is increasingly seen as acceptable—if not desirable—among pension funds and sovereign wealth funds chasing stable returns.

EDF’s ability to secure £4.5 billion from a single global asset manager signals a maturing of the sterling private credit market, which has historically lacked the depth of its euro or dollar counterparts. Energy sector participants point out that this move also bolsters the credibility of the UK’s nuclear revival, a policy direction reinforced by Westminster’s recent push for small modular reactor licensing and updated National Grid capacity targets.

For Apollo, the EDF transaction not only sets a new volume record in sterling private debt markets but also enhances its standing among European policymakers and corporate strategists seeking agile capital amid macroeconomic uncertainty.

How do institutional investors view Apollo’s role in supporting EDF and nuclear energy infrastructure?

Institutional sentiment surrounding Apollo’s investment has generally been positive, with investors characterizing the deal as a win-win for both capital provider and recipient. By tapping private capital rather than expanding sovereign debt issuance, EDF gains financial headroom while maintaining its strategic posture in UK energy. From Apollo’s perspective, the EDF callable notes offer credit exposure to a regulated utility with predictable revenue streams and government backing, while also allowing for high-yield potential through structural complexity.

Market participants believe this type of deal will increasingly dominate the infrastructure capital stack, especially as global banks retrench from long-duration project finance due to Basel IV and internal return thresholds. Fixed-income managers see Apollo’s EDF deal as an indicator that large-scale, ESG-aligned infrastructure projects can be de-risked and monetized in the private market without compromising investor discipline.

What is the long-term outlook for EDF’s funding model and Apollo’s infrastructure strategy?

With Hinkley Point C still under construction and further nuclear ambitions on EDF’s roadmap—including Sizewell C in Suffolk—the demand for capital will remain elevated for years to come. Private credit is likely to remain a core tool in EDF’s financing arsenal, particularly if government support is tied up in budget negotiations or geopolitical uncertainties.

Apollo’s High-Grade Capital Solutions strategy, which has already deployed over $100 billion since 2020, shows no signs of slowing. Infrastructure analysts expect the firm to replicate similar financing templates across other European energy utilities and even clean-tech ventures requiring patient capital.

In this context, the £4.5 billion EDF deal is more than a milestone—it is a blueprint for future megaproject funding that bridges public policy goals and private sector discipline.