Fannie Mae's Green Bond Program Expands with Latest Single-Family Green MBS Issuances
Planned Programmatic Issuance Underscores Commitment to Green Financing
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced that it issued its latest Single-Family Green Mortgage-Backed Security (MBS) transactions under its Green Bond Program as part of the company’s ongoing commitment to be a leader in green finance. Fannie Mae’s Single-Family Green MBS program recently received a Light Green Second Opinion from CICERO Shades of Green, a leading global provider of green ratings for bonds. CICERO Second Opinions are independent, research-based evaluations of green bond investment frameworks to determine the environmental robustness of green bonds and offer investors better insight into the environmental quality of these bonds.
“We are proud to be a driver of innovation in green mortgage finance,” said Hugh R. Frater, Chief Executive Officer, Fannie Mae. “Our new Single-Family Green MBS issuances further our commitment to sustainability in our business, the homes we finance, and the communities we serve. These transactions are the latest step in a journey – begun a decade ago when we introduced green finance to the multifamily market – that increasingly ties Fannie Mae’s business activities to measurable Environmental, Social, and Governance (ESG) outcomes.”
Fannie Mae has issued over $40 million in Single-Family Green MBS since the first bond was issued on April 22, 2020 to commemorate the 50th anniversary of Earth Day.
“We are excited about the Single-Family Green MBS program and look forward to increasing our issuances backed by green, energy-efficient mortgage loans,” said Renee Schultz, Senior Vice President, Capital Markets, Fannie Mae. “These offerings have attracted investor interest and serve to enhance liquidity in the single-family mortgage finance market.”
Fannie Mae Single-Family Green MBS transactions include only mortgage loans backed by newly constructed single-family residential homes with ENERGY STAR® certifications that meet or exceed the national program requirements for ENERGY STAR Certified Homes. Future Single-Family Green MBS issuances may include other energy-efficient new construction standards that meet or exceed those of ENERGY STAR Certified Homes, Version 3.0.
ENERGY STAR Certified Homes are at least 10% more energy efficient than typical single-family homes built to code. On average, these homes are 20% more efficient than single-family homes built to code.
In addition to these transactions, Fannie Mae has issued $75 billion of Multifamily Green MBS since 2010 backed by either green-certified properties or properties targeting a reduction in energy or water consumption. As the world’s largest green bond issuer since 2017, Fannie Mae is dedicated to improving environmental sustainability in the homes the company finances. Every year since 2015, Fannie Mae has received the EPA’s ENERGY STAR Partner of the Year Award.
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