Freddie Mac Multifamily Impact Bonds Surpass $10 Billion Mark

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced in its Impact Bonds Report that it has issued over $10 billion in Green, Social, and Sustainability Bonds since 2019. The company doubled its Impact Bond issuance in 2021, highlighting its commitment to support rental housing that is not only sustainable but also affordable. The report details:

• $4.6 billion in Green Bonds focusing on energy and water efficiency.
• $2.3 billion in Social Bonds aiding affordable housing for underserved populations.
• $3.4 billion in Sustainability Bonds promoting economic mobility.

Full details are in the report available on their website.

Positive

• $10 billion in Impact Bonds issued since 2019 indicates robust capital mobilization.
• Doubled Impact Bond issuance in 2021 reflects growing investor confidence and commitment to sustainable housing.
• Green Bonds projected to save tenants over $250 annually in utility costs and conserve significant water and energy resources.
• Social Bonds support over 130 loans for underserved populations, addressing critical affordable housing needs.

Negative

• None.

New Report Shows Success of Green, Social and Sustainability Bonds

MCLEAN, Va., May 05, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily released its annual Impact Bonds Report detailing the company’s successful efforts to issue more than $10 billion in Green, Social and Sustainability Bonds since 2019. The Impact Bonds offerings were created to provide investors an opportunity to support multifamily properties that address persistent housing challenges, particularly environmental and social issues.

“Freddie Mac doubled our total Impact Bond issuance in 2021 underscoring our efforts to support rental housing that is green, affordable and meets the diverse needs of communities throughout the country,” said Robert Koontz, the head of Capital Markets for Freddie Mac Multifamily. “These innovative offerings enhance our mission and provide investors with a unique opportunity to help establish and maintain sustainable communities across the country by providing safe, efficient and affordable workforce housing.”

The report provides highlights from the three bond programs that fall under Freddie Mac Multifamily’s impact umbrella:

• $4.6 billion in Green Bonds: Green Bonds are backed by Multifamily loans that incentivize energy- and water-efficiency improvements at workforce housing properties. Tenants in these properties are projected to save an average of more than $250 per unit annually through lower utility costs as a direct result of the green initiatives. In total, the water improvements driven by the program are projected to save over 485 million gallons of water per year which is equivalent to the annual water usage for over 5,200 households. Energy reductions are projected to save enough energy to power roughly 9,800 homes (359 million kBtu).
  
  
• $2.3 billion in Social Bonds: Social Bonds focus on supporting affordable housing by providing liquidity to financial institutions with a distinct mission of addressing affordable housing challenges or providing financing targeted toward underserved populations. Over 130 of the loans underlying Freddie Mac’s Social Bond issuances have supported underserved populations including the disabled, senior citizens, farmworkers, veterans and homeless persons through transitional housing. Nearly 67% of units at these properties are affordable to families earning 50% of area median income (AMI) or less.
  
  
• $3.4 billion in Sustainability Bonds: Sustainability Bonds attract capital to support residents economic mobility and, more broadly, generate community economic growth and sustainability. More than 83% of units at properties with financing supported by the bonds are affordable to families earning 60% of AMI or less. More than two-thirds of mixed-income properties financed are in Areas of Concentrated Poverty, helping improve residential economic diversity, which leads to greater economic and social mobility within a community.
  

The full text of the report is available on Freddie Mac’s website.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income.   Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com
Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com

FAQ

What was the total amount of Impact Bonds issued by Freddie Mac (FMCC) since 2019?

Freddie Mac has issued over $10 billion in Impact Bonds since 2019.

How did Freddie Mac's Impact Bond issuance change in 2021?

Freddie Mac doubled its total Impact Bond issuance in 2021 compared to previous years.

What are Green Bonds offered by Freddie Mac (FMCC)?

Green Bonds focus on energy- and water-efficiency improvements in multifamily housing.

What purpose do Social Bonds serve for Freddie Mac (FMCC)?

Social Bonds provide liquidity to support affordable housing for underserved populations.

How do Sustainability Bonds benefit communities through Freddie Mac (FMCC)?

Sustainability Bonds support economic mobility and community growth, particularly in mixed-income properties.