Electricite de France SA appointed HSBC Holdings Plc to advise on the financing for the 16 billion-pound ($27 billion) project to build the U.K.’s first nuclear power plant since 1995.
The bank will help structure the debt funding the construction of the plant at Hinkley Point, England, according to two people with knowledge of the matter, who asked not to be identified because the financing is private. EDF, Areva SA and two Chinese companies agreed to build the power station in October after reaching a deal with the U.K. government that guaranteed prices for the power that will be generated.
The consortium plans as much as 10 billion pounds of financing for the plant, according to an Oct. 21 presentation on EDF’s website. The power station will supply about 7 percent of the U.K.’s electricity and is due to begin generating in 2023.
Jonny Blostone, a London-based spokesman for HSBC, declined to comment on the bank’s appointment. EDF spokesman Tim McCoy, also based in London, declined to comment.
Government backing for the project includes a debt guarantee from Infastructure UK, the Treasury unit established in 2010 to support investment in projects, according to the EDF presentation. European regulators are investigating the deal and have said the terms may not meet rules on state aid.
HSBC helped arrange 305 million pounds of bonds to finance the Greater Gabbard offshore wind power project in October. The London-based bank also joined with Credit Agricole SA earlier this year to organize bonds backing a 500 million-pound highway project in Scotland.