GE to Sell Energy Debt Finance Business for $2.56 Billion

By Allison Prang 

General Electric Co. has struck a deal to sell another part of GE Capital, this time selling its energy debt financing business to Starwood Property Trust Inc. for $2.56 billion.

Starwood said Wednesday it agreed to buy GE Capital's Energy Project Finance Debt Business. The deal includes unfunded loan commitments of $400 million.

Starwood said the unit would complement its Starwood Energy Group, founded in 2005, which makes energy infrastructure investments.

GE has been shrinking its GE Capital business for years. It was once considered a systemically important financial institution in the U.S., but shed that designation in 2016 as the company divested several parts of the business.

This year, GE said it was looking to substantially reduce the size of GE Capital's energy and industrial businesses over the next 24 months.

GE has also been working on getting out of other operations outside of GE Capital. The Wall Street Journal reported late last month that GE had hired an investment bank to auction off parts of GE Digital, its software division. GE also agreed to sell its industrial-engines unit and its railroad division.

Shares of GE rose 0.5% premarket. Shares of Starwood were unchanged.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

August 08, 2018 08:26 ET (12:26 GMT)

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