Apollo Global Management has agreed to provide £4.5bn in unsecured debt financing to support the UK’s Hinkley Point C nuclear power plant, marking one of the largest private credit transactions ever in the UK infrastructure space.

The Somerset-based project, led by French energy group EDF, has been plagued by mounting delays and ballooning costs. Initially expected to cost £18bn and begin operations in 2025, the project’s total price tag has surged to nearly £46bn, with a revised operational start date pushed to 2029.

Apollo’s investment-grade loan, reportedly priced just below 7%, addresses a major funding shortfall following the withdrawal of China General Nuclear Power Group (CGN), which had previously committed to funding a third of the development. CGN pulled back in 2023 after the UK government excluded it from another nuclear project, Sizewell C, citing national security concerns.

While the Apollo financing could potentially support other EDF-led initiatives, Hinkley Point is expected to be the primary beneficiary. The deal comes as EDF seeks to stabilise the project’s finances amid ongoing pressure, with government-backed “contracts for difference” providing future revenue guarantees for electricity generated by the plant.

This transaction highlights the accelerating role of private credit in large-scale infrastructure financing, traditionally the domain of banks and public bond markets. Apollo, which manages over $800bn in assets, has increasingly prioritised European energy and infrastructure as part of its global lending strategy. The firm has recently extended large-scale credit to corporates including Intel, Air France, and AB InBev.

Apollo and EDF declined to comment on the deal.

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