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Supporting the National Wealth Fund (NWF) to deliver £36.6 billion in debt financing for one of the largest energy infrastructure projects in Europe
Download the PDFUK energy infrastructure investment case study: Securing £50 billion investment for 60+ years of low carbon energy
UK energy infrastructure investment case study: Securing £50 billion investment for 60+ years of low carbon energy
£36.6 billion debt financing secured.
One of the world’s largest energy projects.
60+ years of clean power delivered and 70,000+ jobs supported.
Another client success story, supported by Addleshaw Goddard.
With a projected value of £50 billion, Sizewell C is set to be one of the most impactful infrastructure projects in generations. As one of the largest energy infrastructure projects ever undertaken in Europe, it will provide decades of clean, reliable electricity for around 6 million homes in the UK.
We were appointed by NWF to advise it in its capacity as the main debt provider to the project, committing £36.6 billion of secured debt to fund the construction of the 3,200 MW nuclear power plant. The NWF facility sits alongside an additional £5 billion of debt committed by a syndicate of international commercial banks under an ECA-covered facility supported by the French export credit agency, BpifranceAE. The project, whose largest shareholder is the UK government, is also backed by major industrial and financial investors EDF, Centrica, LaCaisse and funds managed by Amber Infrastructure Group.
A few fast facts
What happened
Sizewell C achieved strong investment grade ratings from three global rating agencies. Sizewell C is the first nuclear power project to be financed using the UK’s Regulated Asset Base (RAB) model, under a regulatory regime developed over years. It is the first time globally that a significant debt and equity raise in respect of a single asset nuclear power construction project has successfully reached financial close, and represents a breakthrough moment for the nuclear power industry globally. The combination of the investment grade ratings, the RAB and the purpose of the debt (being the construction of the project) meant that the debt was structure as a hybrid investment grade/project finance financing, and certain facilities were designated as green finance, or capable of being designated as green finance, under the LMA green loan principles.
We advised NWF on all aspects of its involvement on this transaction including financing, as well as on the government support package, the economic regulatory regime, and wider specialist areas including corporate matters, subsidy control, intellectual property, planning/real estate, construction/supply chain, ESG, and employment and pensions.
We are sincerely grateful to Addleshaw Goddard (AG) for their support on this transaction, particularly at a stage when it was still a developing opportunity for NWF. AG’s willingness to engage early, when others were hesitant to take that risk, exemplifies true partnership.
We are thrilled to assist NWF as the Sizewell C project reaches this important milestone on one of Europe's most significant infrastructure projects. We have brought expertise across nuclear, infrastructure finance, energy market regulation and other disciplines to support NWF on this incredibly large and complex project.
Key contacts
Rory Connor
Partner, Co-Head of Power, Infrastructure Projects & Energy
London, UK
London, UK
Richard Goodfellow
Head of IPE and Head of Energy and Utilities (Global)
United Kingdom
United Kingdom