METLIFE INVESTMENT MANAGEMENT PROVIDES $197.8 MILLION IN PUBLIC-PRIVATE FINANCING TO FLOOD DIVERSION PROJECT
MIM develops tailored private placement that aligns with green loan principles and contributes to the advancement of UN sustainable development goals
Project financing to help protect 235,000 people in the Fargo-Moorhead (FM) metropolitan area from the impacts of extreme flooding
WHIPPANY, N.J., October 15, 2021
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it was the sole lender for $197.8 million in financing to support the Public-Private Partnership (PPP) portion of the FM Area Diversion project, the first PPP flood management project in North America.
MIM’s Private Capital team led the innovative private placement program on behalf of MetLife’s general account and MIM’s institutional clients as part of a broader financing package structured by the Red River Valley Alliance, a consortium including Acciona Concesiones, Shikun & Binui, and North American Construction Group. The Metro Flood Diversion Authority (MFDA) of the Fargo-Moorhead area selected the consortium for the design, construction, financing, operations, and maintenance of the project.
The cities of Fargo, North Dakota, and Moorhead, Minnesota, and surrounding areas have historically been prone to frequent and severe flooding from the Red River that cannot be mitigated solely by levees and floodwalls. The diversion project involves the construction of a 30-mile channel and associated infrastructure that will direct water around the Fargo-Moorhead metropolitan area during times of flooding, protecting businesses, property and over 235,000 local residents.
John Tanyeri, head of Infrastructure and Project Finance at MetLife Investment Management, said: “We’re proud to provide value through a creative private placement financing that will benefit the residents of the Fargo-Moorhead metro area. We’re committed to investing in green infrastructure that aligns with the climate adaptation and mitigation goals of our communities, and it’s promising to see a sophisticated funding model that combines public and private investment to achieve a more sustainable future.”
The PPP funding reinforces MIM’s long-term commitment to green investments that drive environmental sustainability. The financing framework for the private placement aligns with the four core components of the Green Loan Principles 2021 and directly advances goal 11 and goal 13 of the UN Sustainable Development Goals.
MIM’s Private Capital group comprises private placements, infrastructure and structured credit investment management, and is active across a wide range of industry sectors, including general industrial, healthcare, professional services, retail, utilities, electric transmission, renewable power and social housing, among others. As of June 30, 2021, MIM had $131.9 billion in private capital assets under management1 and $666.7 billion in total assets under management.2