Addleshaw Goddard steers debt side of landmark £38bn Sizewell C deal

Addleshaw Goddard, Clifford Chance, Linklaters and Slaughter and May are among the firms advising on the funding of Sizewell C - the £38 billion nuclear power station in Suffolk expected to generate electricity for six million UK homes once online.

The financing package, signed off on Tuesday (22 July), includes a mixture of debt and equity and exceeds the project’s estimated £38 billion cost to allow for potential overspend.

Completion of the plant is expected in the mid-2030s.

Financing

On the debt side, the National Wealth Fund (NWF) - the government-owned investment fund previously known as the UK Infrastructure Bank - will provide up to £36.55 billion via a term loan to fund the plant’s construction. This will sit alongside a £5 billion debt guarantee from France's export credit agency.

Equity investors include the UK government, which will hold a 44.9% stake, making it the largest shareholder. Also involved are British Gas owner Centrica, paying £1.3 billion for a 15% stake, as well as Canadian pension fund La Caisse (20%), EDF (12.5%) and Amber Infrastructure which has 7.6%.

Bigger picture

The large public sector role in Sizewell C’s financing contrasts with the approach taken for Hinkley Point C, Sizewell’s sister project. The project recently received a £4.5 billion credit boost from private capital giant Apollo, which Kirkland and Latham steered, in what was the largest-ever sterling private credit transaction.

Advising

Addleshaw Goddard acted for NWF, advising on all aspects of the debt financing for the project. The team was led by energy partners Rory Connor and Richard Goodfellow with assistance from partners Sara Gilmore, Bruce Chen, Karen Rowe and Sophie Hiley.

Slaughter and May advised Centrica. The team included energy partners Hywel Davies, Daniel Mewton, Robert Innes, Richard Todd and Oliver Moir. Energy and infrastructure financing head Azadeh Nassiri was also involved, as well as competition partner Isabel Taylor and tax partner Sarah Osprey.

Linklaters acted for the UK government, led by Charlotte L Morgan, alongside partners Maryam Adamji and Stephen Le Vesconte - all members of the energy and infrastructure group.

Clifford Chance advised Sizewell C Limited, the project company. The team was led by John Wilkins - head of the firm's nuclear group - and energy partner Praveen Jagadish.