France’s electricity utility giant, EDF will be fully nationalized in an effort to give the government more control over a restructuring of the debt-laden group. In a speech, French Prime Minister  Elisabeth Borne said that the state’s ownership will rise from the current 84% to 100% but no decision was made on the modalities. The utility major has been struggling with problems at its reactors and cost overruns coupled with government caps on electricity prices. Earlier this year, French President Emmanuel Macron said that EDF will need a broad reorganization and tens of billions of euros of public financing to help it build 6-14 new nuclear plants by 2050. EDF has been under pressure and was cut to Baa1 and BBB by Moody’s and S&P in February and a month later, sharply revised down its forecast for a profit hit.

EDF’s EUR 3.375% Perp was up 5.2 points to 73.44, yielding 8.03%.

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