EDF to raise funds for Hinkley Point from sale of stake in prized European asset

Oliver Gill
Follow Oliver
Decommissioning Of Nuclear Power Stations In The UK
Hinkley Point is expected to provide seven per cent of the UK's power needs (Source: Getty)

The French owner of the Hinkley Point C project is selling off prime assets in order to fund development of the controversial UK nuclear reactor.

According to reports in Le Figaro over the weekend, EDF, is looking for a buyer of a 50 per cent stake in RTE, Europe's biggest high-voltage electricity transmission grid.

The debt-laden French state-controlled energy provider needs to sell non-core assets in order to fund the tens of billions of euros of investment that Hinkley Point requires.

Although RTE is run as an entirely separate entity - due to EU rules that prevent utility companies controlling the electricity networks - the plan would be to create a holding company which would either be held directly by EDF or via French state-owned bank Caisse des Depots (CDC).

On Friday EDF announced that it would be holding an EGM on 26 July to obtain clearance for a 4 billion euro share issue. As an 85 per cent shareholder the French government would be would provide over 3 billion euros. The cash is to be used alongside proceeds for non-core sales to fund projects such as Hinkley Point.

Messier Maris and Goldman Sachs were reported as advising EDF; with Citigroup and Barber Hauler advising RTE. BNP Paribas and Compagnie Financière du Lion were advising CDC.

Related articles