Apollo to provide £4.5 billion financing to EDF for UK energy projects

LONDON - Apollo Global Management (NYSE:APO), a prominent player in the Financial Services industry with a market capitalization of $77.17 billion, has agreed to invest up to £4.5 billion in fixed-rate callable notes issued by Électricité de France (EDF), according to a press release statement from the company. InvestingPro data shows the company maintains a GOOD financial health score, with liquid assets exceeding short-term obligations.

The notes will be issued under EDF’s €50 billion Euro Medium Term Note program, with proceeds primarily financing EDF projects in the United Kingdom, including the Hinkley Point C nuclear power station.

The transaction represents one of the largest sterling-denominated note issuances on record and the largest capital funding transaction executed by EDF, according to the statement.

"Apollo is pleased to provide this bespoke, large-scale financing to EDF in support of its vital role in advancing European energy sovereignty and power infrastructure, including in the UK," said Jamshid Ehsani, Apollo Partner.

The investment adds to Apollo’s history of investing in French companies, which spans nearly three decades. The firm previously provided €2.5 billion to Air France-KLM through its High-Grade Capital Solutions strategy.

Since 2020, Apollo has originated over $100 billion of capital solutions for companies including Intel, BP, Sony, and AB InBev through this strategy.

Latham & Watkins, LLP and Kirkland & Ellis LLP served as legal counsel to Apollo, while BNP Paribas and Hogan Lovells, LLP acted as financial and legal advisors to EDF.

As of March 31, 2025, Apollo had approximately $785 billion of assets under management. The company has maintained dividend payments for 15 consecutive years, currently offering a 1.53% yield, and trades near its Fair Value according to InvestingPro analysis.

In other recent news, Apollo Global Management is involved in several significant financial maneuvers. The firm is providing £4.5 billion in debt financing for the UK’s Hinkley Point nuclear project, addressing a key funding gap for the development, which has seen costs rise to nearly £46 billion. Meanwhile, Wolfspeed Inc. is nearing a bankruptcy deal with Apollo and other lenders, allowing the chipmaker to potentially reduce its debt burden through a prepackaged bankruptcy approach. This arrangement could see Wolfspeed shareholders recover up to 5% of their investment, an atypical outcome in bankruptcy scenarios.

Additionally, International Game Technology has rebranded its lottery business as Brightstar Lottery, ahead of selling its Gaming and Digital business to Apollo-affiliated funds. The transaction is expected to close by July 2025. In Spain, Apollo is preparing to finance Neinor Homes SA’s potential acquisition of Aedas Homes SA with a €750 million loan, which could create the largest property developer in the country.

Raymond James has maintained its Strong Buy rating for Apollo Global Management, with a price target of $173. The firm highlighted Apollo’s collaboration with major banks to enhance liquidity in private credit markets, potentially making private credit assets more accessible to retail investors. These recent developments underscore Apollo’s active role in diverse sectors, from nuclear energy to real estate and private credit markets.

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