French energy group EDF said Friday it would raise billions in cash to fill a financial hole created by the closure of part of its nuclear fleet and measures to protect consumers from rising energy prices.

The French state, which holds an 84-percent stake in the supplier, will inject 2.7 billion euros ($3 billion) into the struggling energy giant.

The capital raise had already been announced in February, but the final value of 3.1 billion euros was higher than the initial indications.

The move would allow EDF to "strengthen its balance sheet in light of the events of early 2022", group CEO Jean-Bernard Levy said in a statement.

EDF's fortunes had already taken a hit after the government ordered it in January to cap electricity bills for French clients, as prices have spiked on global markets due to rising tensions with Russia.

While the provider normally generates the bulk of its electricity from its network of 56 nuclear reactors across France, many are near the end of their 40-year lifespans and around a dozen have been shut or will be soon to carry out safety inspections over corrosion risks.

That will force the group to buy power on the European market, which it expects to cost it some 11 billion euros this year -- even as its total debt load now stands at around 43 billion euros.

French President Emmanuel Macron, currently campaigning for reelection, announced plans in February to build as many as 14 new next-generation EPR2 reactors to reduce the country's reliance on fossil fuels, which EDF has said could cost some 50 billion euros.

cdu-ngu/sea/lth

EDF - ELECTRICITE DE FRANCE

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