HSBC to arrange state-backed loans for the UK’s Sizewell nuclear plant

HSBC Holdings Plc is currently in discussions with investment funds regarding potential loans aimed at financing the construction of the Sizewell C nuclear plant in the UK. This comes as the government intensifies its efforts to push forward with a crucial energy project slated to commence this year.

The bank is engaged in talks with funds to offer debt that would be backed by the country’s export finance agency, as per sources familiar with the situation. This arrangement would assist Sizewell in mitigating the risks associated with financing a long-term project while accessing more affordable capital, individuals familiar with the matter revealed on condition of anonymity due to the confidential nature of the negotiations.

HSBC, Sizewell, and UK Export Finance have all chosen not to provide comments reported by Bloomberg. A spokesperson for the Department for Energy Security and Net Zero stated that the evolution of the project’s commercial framework is currently undergoing sensitive discussions.

Securing funding guaranteed by the state would mark a significant milestone for a project with a potential cost exceeding £40 billion. The UK government has committed to sourcing up to 25% of the nation’s power from nuclear plants in the upcoming years as part of its efforts to achieve net-zero carbon emissions by 2050.