Target Information

Apollo Global Management, a leading global alternative asset manager, has announced its agreement to invest up to £4.5 billion in fixed-rate callable notes issued by Électricité de France (EDF). This investment is part of EDF's €50 billion Euro Medium Term Note (EMTN) program, with the proceeds primarily designated for financing key projects in the United Kingdom, particularly the Hinkley Point C nuclear power station. This transaction marks one of the largest issuances of sterling-denominated notes on record.

Industry Overview in the United Kingdom

The energy sector in the United Kingdom is undergoing significant transformation as the country pivots towards renewable energy sources and strives to enhance energy security. The UK government has set ambitious targets for transitioning to low carbon energy systems and aims to achieve net-zero emissions by 2050. Nuclear energy continues to play a critical role in the UK's energy mix, providing a stable and low-carbon electricity supply while supporting the country's energy independence.

In recent years, major investments in nuclear infrastructure, such as the Hinkley Point C project, have underscored the government's commitment to maintaining nuclear as an essential component of its energy strategy. The nuclear sector not only contributes to reducing carbon emissions but also ensures a reliable energy supply amidst fluctuating fossil fuel markets.

With the global focus on energy diversification and sustainability, there is a growing consensus that public-private partnerships will be crucial in financing large-scale energy infrastructure projects. The substantial investment from Apollo into EDF represents confidence in the resilience and long-term potential of the UK energy sector, particularly concerning nuclear energy.

Furthermore, the UK's regulatory framework and supportive government policies are conducive to foreign investments, reflecting a favorable environment for capital deployment in critical energy projects. This strong foundation is expected to attract further investments in the sector, facilitating the transition towards a sustainable energy future.

The Rationale Behind the Deal

This transaction is aligned with Apollo's strategy to deepen its partnership with EDF and the French government, solidifying its standing as a leading capital provider in Europe. By investing in EDF's projects, Apollo not only supports the advancement of energy infrastructure but also aligns with broader European energy sovereignty goals.

Moreover, the investment demonstrates Apollo's long-term commitment to the French market and its ability to structure bespoke financing solutions for leading companies in the region. It further reflects the investor's confidence in EDF's capacity to execute on its strategic objectives in the UK energy landscape.

Information about the Investor

Apollo Global Management is renowned for its diversified portfolio across various asset classes, with a significant focus on private equity, credit investment, and real estate. With approximately $785 billion in assets under management as of March 31, 2025, Apollo has established a reputation for delivering bespoke capital solutions to its clients and partners.

The firm has a rich history of investment in Europe, with a particular emphasis on the French market over the past three decades. Apollo's expertise in providing innovative funding solutions has enabled it to support numerous industrial leaders, including notable transactions with companies like Air France-KLM and BP. This experience positions Apollo as an attractive partner for EDF in advancing crucial energy infrastructure projects.

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The recent investment in EDF by Apollo is a significant milestone that reflects both an opportunity and a strategic alignment with the ongoing transformation of the UK energy sector. This capital funding transaction reinforces Apollo's commitment and expertise in driving critical infrastructure projects in Europe, which are essential for achieving energy security and sustainability.

From a long-term perspective, this investment can be seen as a prudent decision by Apollo, given the essential role that nuclear energy will continue to play in the UK’s energy matrix. Hinkley Point C represents not just a project of economic significance but a foundational component for the UK’s energy resilience.

The scale of the investment also indicates the confidence that Apollo has in the operational capabilities of EDF and the regulatory framework that governs energy markets in the UK. As demand for clean energy rises, investments in nuclear infrastructure are likely to yield positive financial returns and strategic benefits for both Venus and the broader energy sector.

Overall, this deal is poised to be seen as a progressive investment, fostering innovation and sustainability in energy production while enabling comprehensive partnerships that can pave the way for future developments in the industry.

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