Fannie Mae Prices $529.4 Million Green Multifamily DUS REMIC (FNA 2020-M20) Under Its GeMS Program
WASHINGTON, DC – May 14, 2020 – Fannie Mae (FNMA/OTCQB) priced its second Green Multifamily DUS® REMIC in 2020 totaling $529.4 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 12, 2020. FNA 2020-M20 marks the fifth Fannie Mae GeMS issuance of 2020.
“ The 2020-M20 marked our 13th GeMS issuance backed by Green MBS collateral, bringing our total Green GEMS issuance to $10.4 billion – and building off of our $76.8 billion in Green MBS issued to date,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “Despite challenges in the market, we continue to work to bring ESG investors the same high-quality credit product that is available to all DUS investors.”
Fannie Mae’s Multifamily Green Financing Business provides financing through several different Green product offerings, encouraging apartment building owners to make energy and water savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has issued $76.8 billion in Green MBS and $10.4 billion in Green GeMS since the program’s inception. Read more about it here: https://www.fanniemae.com/multifamily/green-initiative
“In times of uncertainty, Fannie Mae continues to demonstrate its commitment to environmental and social outcomes,” said Chrissa Pagitsas, Vice President, Enterprise Environmental, Social, & Governance. “Fannie Mae continues to support the renovation of homes with more energy- and water-efficient equipment, which is critical as renters spend more time in their homes and may be seeing an increase in their utility bills. The M20 is a tangible commitment to not only tenants and owners, but also to investors to continue participating in the Green Bond market.”
All classes of FNA 2020-M20 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. The structure details for the multi-tranche offering can be found in the table below:
|Class||Original Face||Weighted Average Life||Coupon (%)||Coupon Type||Spread||Offered Price|
|X||$529,382,000||8.67||0.967||WAC IO||Not Offered||Not offered|
Group 1 Collateral
|Collateral||19 Fannie Mae Green DUS MBS|
|Geographic Distribution||FL (30.79%), MA (11.13%), NY (10.86%)|
Debt Service Coverage Ratio (DSCR)
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M20) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.
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Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC’s Web site at www.sec.gov.