Fannie Mae Expanded Its Nearly $88 Billion Green Bond Business in 2020, Adding Single-Family Green Bonds to Its Offerings
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today published its annual Green Bond Impact Report, “Our Next Chapter in Green Bonds Leadership,” to provide transparency into the estimated environmental, social, and economic benefits of Fannie Mae Green Bonds. As the largest green bond issuer in the world, Fannie Mae issued nearly $88 billion of Multifamily Green Mortgage-Backed Securities (MBS) from its first issuance in 2012 through year-end 2020, and has resecuritized approximately $11 billion Multifamily Green MBS into Real Estate Mortgage Investment Conduits (REMICs) as part of its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program. In 2020 alone, the company issued approximately $13 billion of Multifamily Green MBS and, after introducing its first Single-Family Green MBS in April 2020, issued a total of nearly $94 million in Single-Family Green MBS during the year.
"We are proud to share the positive impacts enabled by Fannie Mae’s Green Bond Business and the role it continues to play in building more sustainable housing across the country,” said Laurel Davis, Senior Vice President and Head of Environmental, Social, and Governance, Fannie Mae. “Our Green Bonds reflect Fannie Mae’s long-standing mission to ensure that affordable and stable housing is accessible and that innovative, high-quality green investment opportunities are available for fixed-income investors worldwide. We are excited to expand on our progress to help more industry participants take advantage of the opportunities green bonds provide and to further grow an active global green bond market through the quality, transparency, and impact for which Fannie Mae is recognized.”
The 2020 Green Bond Impact Report includes the estimated one-year impacts of Fannie Mae’s cumulative Green Bond issuances from 2012-2020, including:
- 9.5 billion kilo British Thermal Units (kBtu) of source energy saved
- 8.5 billion gallons of water saved*
- 633,000 metric tons of carbon dioxide equivalent (MTCO2e) of greenhouse gas emissions prevented 2
- $146 million in utility cost savings by multifamily tenants, or an average of $184 per family per year*
- $269 in average homeowner utility cost savings per single-family home per year** 2
- 872,000 units retrofitted or green-building-certified*1
- 224,000 well-paid jobs created or supported
- $9.5 billion in wages paid to construct or retrofit properties, contributing $19.9 billion to U.S. GDP
- $410 million in borrower investment commitment for energy- and water-efficiency measures on 3,696 properties through the Multifamily Green Rewards Mortgage Loans*
- $2.83 in economic output per dollar invested
* Includes estimated impacts only from Fannie Mae Multifamily Green Bonds
** Includes estimated impacts only from Fannie Mae Single-Family Green Bonds
As a leading provider of mortgage financing in the U.S., Fannie Mae creates substantial positive impacts through its Green Bonds by helping to improve the lives of the people who reside in the homes and properties the company finances while reducing the overall environmental footprint of the housing sector.
Fannie Mae launched the Multifamily Green Initiative in 2010, which became the company's Multifamily Green Financing Business after the issuance of its first Multifamily Green Bond in 2012. In April 2020, on the 50th anniversary of Earth Day, Fannie Mae issued its first Single-Family Green MBS, demonstrating its commitment to advancing the green bond market and generating measurable environmental, social, and governance (ESG) outcomes. Fannie Mae Single-Family Green MBS meet all of Fannie Mae’s underwriting standards and may be TBA-eligible, and specific information about the underlying loans and related resources are readily available on Fannie Mae’s website.
Fannie Mae Green Bonds incentivize retrofitting existing properties with efficiency measures, installing renewable energy systems, and building new green-building-certified properties and homes to increase energy- and water-efficiency and reduce greenhouse gas emissions. These activities also help lower utility costs for homeowners, renters, and multifamily property owners while helping to create new jobs and contribute to the broader economy. Fannie Mae Green Bonds offer global investors rigorous, transparent, and high-quality green investment opportunities that positively impact housing infrastructure and the environment by helping to accelerate the transition to a low-carbon economy and a greener housing supply. The company’s Green Bond Frameworks are aligned to ICMA Green Bond Principles and have been evaluated as Light Green or better by CICERO, a global provider of green ratings for bonds.
For more information on Fannie Mae’s Green Bond Business, please visit the Fannie Mae Green Impact site.
1 Revised as of 12/10/21
2 Revised as of 06/22/22
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