METLIFE INVESTMENT MANAGEMENT PROVIDES $200 MILLION IN FINANCING TO PHASE OUT THE LAST TWO COAL FIRED PLANTS IN NEW JERSEY
Decommissioning to reduce 3.9 million tonnes of CO2, supporting New Jersey clean energy goals and reflecting MIM’s commitment to green investments
WHIPPANY, N.J., April 13, 2022
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced it was the sole lender for approximately $200 million in financing to support the decommissioning of the last two coal-fired plants in New Jersey.
The financing will allow Starwood Energy Group, the majority owner of the two plants, and Atlantic City Electric (ACE), a regulated electric transmission and distribution utility serving approximately 600,000 customers in New Jersey, to move forward with proposals to retire ongoing power sales agreements between ACE and the coal-fired plants. Both plants are expected to cease generating coal energy at the end of May 2022, nearly 30 months ahead of schedule.
MIM’s Private Capital team led the structuring and financing on behalf of a number of institutional clients and MetLife’s general account. The financing will be used to pay for decommissioning costs, including payments to suppliers and operators, and repayment of existing outstanding debt. It is expected that the agreement by both plants to cease producing coal-fired electricity will lead to redevelopment and transition to other forms of electric generation.
The transaction reinforces MIM’s long-term commitment to energy transition initiatives that drive environmental sustainability and decarbonization. The decommissioning is expected to result in the reduction of 3.9 million tonnes of CO2 in the atmosphere, the equivalent of eliminating over 750,000 passenger cars a year, and an estimated $30 million cost savings to ACE customers. The transaction also supports New Jersey’s Energy Master Plan, which aims to reduce 80% CO2 emissions levels and reach 100% clean energy generation by 2050.
“We’re committed to continuing to support the energy transition through our investments, which we customize to the needs of our borrowers while also targeting positive community outcomes,” said Nancy Mueller Handal, head of Private Fixed Income & Alternatives at MIM. “ We’re proud to be a partner in a project that will lead to cleaner energy production by transitioning the last two coal plants in New Jersey, which reinforces our global decarbonization efforts as we collectively strive for a greener future.”
"We are grateful to MetLife Investment Management for working with us on this very important transaction as we help move New Jersey to a cleaner future and retire the last two coal plants in New Jersey," said Himanshu Saxena, CEO of Starwood Energy. "We applaud the MIM team for its ingenuity and dedication.”
MIM manages $4.5 billion in approximately 150 investments in energy transition renewable energy technologies1, including solar and wind power generation, hydroelectric power, geothermal energy, biomass and battery.
MIM’s Private Capital team’s investment strategies include private placements, infrastructure and structured credit investment management 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 December 31, 2021, MIM had $135.7 billion in private capital assets under management2 and $669.0 billion in total assets under management.3