French State To Pump 3 Bn Euros Into EDF

French state to pump 3 bn euros into EDF

PARIS, (Pakistan Point News - APP - 26th july, 2016) - France will pump 3 billion euros into state-controlled electricity company EDF, shareholders decided Tuesday, two days before it is expected to give the final green light to the controversial construction of two nuclear reactors in Britain. At an extraordinary meeting, shareholders approved a 4-billion increase in share capital, of which the French state, which owns 85 percent of EDF, is to pay 3 billion.

Plans for the share issue was first announced in April, and should take place later this year. "The increase in capital will reinforce the company's own funds ... to cope with all of the essential investments that need to be made," chief executive Jean-Bernard Levy told shareholders. Saddled with 37.4 billion Euros in debt at the end of last year, Levy acknowledged that the company's "financial trajectory is taut" given the fall in energy prices. He said the added capital would help the company protect its credit rating and ability to refinance its debt at affordable rates. EDF must soon step up renovations to extend the life of its 58 nuclear reactors in France, which is expected cost it around 51 billion euros.