Fannie Mae Multifamily Green GeMS REMIC Included in Bloomberg Barclays MSCI Green Bond Index
Index Inclusion Highlights Success of Fannie Mae's Green Financing Program
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that its Multifamily Green GeMS™ REMIC (FNA 2017-M15 A2) security is now included in the Bloomberg Barclays MSCI Green Bond Index – a measure of the global market for fixed-income securities issued to fund projects with direct environmental benefits. This Fannie Mae security is backed exclusively by loans on green building certified properties.
"The incorporation of this Multifamily Green GeMS REMIC security in the Bloomberg Barclays MSCI Green Bond Index is an important stage in the growing role for Fannie Mae green securities in the global green bond market," said Dan Dresser, Vice President of Multifamily Capital Markets, Trading and Credit Pricing, Fannie Mae. "This is another sign of the market's maturation and a significant recognition that will help attract a broader investor audience."
In 2017, Fannie Mae issued $27.6 billion in Green MBS backed by either green building certified properties or properties targeting a reduction in energy or water consumption, up from $3.6 billion in 2016 and $111 million in 2015. The company priced its first Fannie Mae GeMS REMIC tranches backed exclusively by its Green MBS collateral in February 2017.
"The inclusion of our securities in the Bloomberg Barclays MSCI Green Bond Index is an exciting development for a program that has enjoyed broad acceptance by lenders, borrowers, and investors," said Chrissa Pagitsas, Director, Multifamily Green Financing Business, Fannie Mae. "Fannie Mae is committed to helping each multifamily owner realize the full financial and environmental potential of their property and the potential savings that can be passed on to residents."
Fannie Mae Green Financing loans are secured by multifamily properties that have been awarded one of 14 Green Building Certifications, such as LEED or Energy Star®, or which have Fannie Mae-financed improvements that target at least a 25% reduction in energy or water consumption. For loans originated prior to 2018, the consumption reduction target was 20% or greater. Fannie Mae introduced its Green Financing products to the market in 2011, and securitizes these loans as Green MBS.
For additional information on Fannie Mae's Green Financing Business, please visit www.fanniemaegreenfinancing.com.Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.