Target Overview

Apollo-managed affiliates, funds, and strategic accounts have entered into an agreement to invest up to £4.5 billion in fixed-rate callable notes issued by Électricité de France (EDF). This financing is part of EDF's €50 billion Euro Medium Term Note (EMTN) program. The funds raised will primarily support EDF's projects in the United Kingdom, particularly the construction of the Hinkley Point C nuclear power station. This transaction stands out as one of the largest sterling-denominated note issuances on record.

Apollo Partner Jamshid Ehsani expressed enthusiasm for the transaction, stating that it reinforces Apollo’s commitment to supporting EDF in its crucial role in enhancing European energy sovereignty and infrastructure, specifically in the UK.

Industry Overview

The energy sector in the United Kingdom is currently undergoing significant transformations, largely driven by the increasing demand for sustainable and reliable energy sources. The UK government has set ambitious targets for reducing carbon emissions and transitioning to renewable energy. Nuclear power, exemplified by the Hinkley Point C project, plays a vital role in achieving these targets by providing a consistent and low-carbon energy supply.

As the market evolves, the nuclear energy industry is receiving renewed attention, with significant investments directed towards modernizing existing facilities and constructing new ones. The Hinkley Point C nuclear power station, once completed, is expected to generate approximately 7% of the UK's electricity needs, marking a substantial contribution to the national grid.

Furthermore, the ongoing collaboration between government and private investors is critical in advancing energy projects. Initiatives like the one between Apollo and EDF highlight the importance of public-private partnerships in facilitating large-scale infrastructure developments, ultimately leading to enhanced energy security and economic growth.

Despite the challenges posed by public scrutiny and regulatory hurdles, the nuclear energy sector remains a significant part of the UK's strategy to meet its energy consumption needs. This includes addressing both current energy demands and future challenges related to climate change and energy independence.

Rationale Behind the Deal

This investment by Apollo reflects a strategic decision to bolster the UK's energy infrastructure through a reliable energy source. The Hinkley Point C nuclear power station is positioned as a cornerstone project that aligns with both national energy strategies and Apollo's commitment to investing in critical sectors.

The financial strength of EDF and the anticipated stability of returns from this project make it an attractive opportunity for investors. By financing this initiative, Apollo aims to support EDF's long-term vision while capturing value from one of the largest capital funding transactions in the sector.

Investor Information

Apollo Global Management is a leading alternative asset manager recognized for its growth and innovation in investment strategies. With over three decades of experience, Apollo has built a robust portfolio across various sectors, including energy, finance, and technology. As of March 31, 2025, Apollo manages approximately $785 billion in assets, positioning itself as a significant player in the global capital markets.

The firm has a proven track record in providing tailored financing solutions and has established partnerships with companies such as Air France-KLM, BP, and Intel. Apollo's expertise in capital markets, coupled with its dedicated approach to investment, underscores its capability to effectively manage high-stakes transactions such as the one with EDF.

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The investment in EDF for the Hinkley Point C project can be seen as a prudent move by Apollo, demonstrating a commitment to sustainable energy practices while reinforcing its strategic portfolio. Investing in such high-profile energy projects aligns with current global trends that favor low-carbon energy sources, making it a timely endeavor that likely positions Apollo favorably among stakeholders.

Moreover, EDF's leadership in the nuclear industry and the regulatory support for nuclear energy in the UK reduces the investment's operational risks. By providing substantial funding, Apollo not only helps drive the UK's energy objectives forward but also ensures potential robust returns in an increasingly competitive market.

Looking ahead, the collaboration between Apollo and EDF may yield further opportunities for investment, especially as the demand for clean energy grows. This partnership can serve as a model for future public-private collaborations, illustrating the importance of private capital in energy infrastructure projects.

In conclusion, this investment represents a strategic intersection of financial acuity and commitment to sustainable energy solutions, positioning Apollo as a forward-looking asset manager deeply involved in transformative projects in the energy sector.

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