Multifamily Green Bond Impact Report Highlights Benefits of Fannie Mae Loan Programs
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today published its first Multifamily Green Bond Impact Report providing metrics on the projected financial, social, and environmental benefits from Fannie Mae Green Bonds for U.S. housing. From 2012 through year-end 2018, Fannie Mae issued $51.7 billion in Green mortgage backed securities and $6.1 billion in Green structured securities, making it the largest green bond issuer in the world in 2017 and 2018.
The Multifamily Green Bond Impact Report offers projected impacts for the economy, tenants, and the environment. Newly constructed or retrofitted green multifamily buildings are estimated to have contributed $7.2 billion in workers’ income and $14.6 billion to gross domestic product (GDP) and supported 170,000 jobs. Owners who made their properties more efficient are projected to recoup their investment within approximately six years on average, while tenants at these properties are projected to see annual utility expenses cut by 10% or $145 on average. As a result of Fannie Mae Green Bonds, properties are projected to reduce water use by 5.9 billion gallons, equivalent to the amount of water consumed annually by nearly 54,000 American families and greenhouse gas emissions by 287,000 metric tons annually, equivalent to nearly 61,000 passenger vehicles driven for one year.
“Fannie Mae’s Green Bonds support critical investment in existing U.S. rental housing to improve energy- and water-efficiency and also recognize investments in green building certifications, cutting utility costs for families and making these properties more economical for owners,” said Jeffery Hayward, Executive Vice President and Head of Multifamily, Fannie Mae. “This innovative program supports job growth for local communities and furthers our efforts to make housing more sustainable and affordable.”
“Nine years ago, we created innovative financing solutions that incorporated energy and water efficiency into traditional mortgage lending and launched our Green Bonds program. Green Bonds serve as more than an excellent investment vehicle – they are designed to target significant environmental, social, and financial benefits,” said Chrissa Pagitsas, Vice President, Fannie Mae. “We are very proud that our growing and transparent Green Bond Program is attracting investors from around the world.”
Fannie Mae’s Green bond program was recognized at Climate Bonds Initiative’s (CBI) 4th Green Bond Pioneer Awards in the “Green Bond Framework 2018” category for its role as the largest green bond issuer worldwide and for bringing transparency to this growing market. Fannie Mae’s Pagitsas was also recognized by CBI as the “Green Bond Champion 2018” for her role in bringing structural diversity and innovation to the market through Fannie Mae’s multifamily green mortgage finance program. The 2019 Green Bond Pioneer Award winners are selected by a panel of external industry-based advisers in recognition of their efforts to create innovative green bond markets.
“As a Green Bond Pioneer Award winner, Fannie Mae is acknowledged for its role as the largest global issuer of green bonds for the second consecutive year. We salute them for their innovative program to support the reduction of carbon emissions from housing and affordable housing in the U.S. and commitment to green finance solutions,” said Sean Kidney, CEO of CBI. “Fannie Mae is also to be commended for its leadership in its green bond framework and providing transparency to global investors.”
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.