Fannie Mae Expanded Its Nearly $88 Billion Green Bond Business in 2020, Adding Single-Family Green Bonds to Its Offerings

Rhea-AI Summary

On June 16, 2021, Fannie Mae (FNMA) released its annual Green Bond Impact Report, highlighting its significant contributions to sustainable housing. As the world's largest green bond issuer, it has issued nearly $88 billion in Multifamily Green Mortgage-Backed Securities since 2012, with $13 billion issued in 2020 alone. The report emphasizes substantial environmental benefits, including energy savings of 9.5 billion kBtu and the prevention of 634,000 metric tons of CO2 emissions. The initiative also supports economic growth, with $9.5 billion in wages paid for construction and renovations.

Positive

• $88 billion in Multifamily Green Mortgage-Backed Securities issued since 2012.
• $13 billion issued in 2020 alone.
• 9.5 billion kBtu of energy saved, contributing to environmental sustainability.
• 634,000 metric tons of CO2 emissions prevented.
• $9.5 billion in wages paid, enhancing economic growth.

Negative

• None.

WASHINGTON, June 16, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today published its annual Green Bond Impact Report, "Our Next Chapter in Green Bonds Leadership," to provide transparency into the estimated environmental, social, and economic benefits of Fannie Mae Green Bonds. As the largest green bond issuer in the world, Fannie Mae issued nearly $88 billion of Multifamily Green Mortgage-Backed Securities (MBS) from its first issuance in 2012 through year-end 2020, and has resecuritized approximately $11 billion Multifamily Green MBS into Real Estate Mortgage Investment Conduits (REMICs) as part of its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program. In 2020 alone, the company issued approximately $13 billion of Multifamily Green MBS and, after introducing its first Single-Family Green MBS in April 2020, issued a total of nearly $94 million in Single-Family Green MBS during the year.

"We are proud to share the positive impacts enabled by Fannie Mae's Green Bond Business and the role it continues to play in building more sustainable housing across the country," said Laurel Davis, Senior Vice President and Head of Environmental, Social, and Governance, Fannie Mae. "Our Green Bonds reflect Fannie Mae's long-standing mission to ensure that affordable and stable housing is accessible and that innovative, high-quality green investment opportunities are available for fixed-income investors worldwide. We are excited to expand on our progress to help more industry participants take advantage of the opportunities green bonds provide and to further grow an active global green bond market through the quality, transparency, and impact for which Fannie Mae is recognized."

The 2020 Green Bond Impact Report includes the estimated one-year impacts of Fannie Mae's cumulative Green Bond issuances from 2012-2020, including:

Environmental Benefits

• 9.5 billion kilo British Thermal Units (kBtu) of source energy saved
• 8.5 billion gallons of water saved*
• 634,000 metric tons of carbon dioxide equivalent (MTCO₂e) of greenhouse gas emissions prevented

Social Benefits

• $146 million in utility cost savings by multifamily tenants, or an average of $184 per family per year*
• $843 in average homeowner utility cost savings per single-family home per year**
• 872,000 properties retrofitted or green-building-certified*
• 224,000 well-paid jobs created or supported

Economic Benefits

• $9.5 billion in wages paid to construct or retrofit properties, contributing $19.9 billion to U.S. GDP
• $410 million in borrower investment commitment for energy- and water-efficiency measures on 3,696 properties through the Multifamily Green Rewards Mortgage Loans*
• $2.83 in economic output per dollar invested

* Includes estimated impacts only from Fannie Mae Multifamily Green Bonds
** Includes estimated impacts only from Fannie Mae Single-Family Green Bonds

As a leading provider of mortgage financing in the U.S., Fannie Mae creates substantial positive impacts through its Green Bonds by helping to improve the lives of the people who reside in the homes and properties the company finances while reducing the overall environmental footprint of the housing sector.

Fannie Mae launched the Multifamily Green Initiative in 2010, which became the company's Multifamily Green Financing Business after the issuance of its first Multifamily Green Bond in 2012. In April 2020, on the 50th anniversary of Earth Day, Fannie Mae issued its first Single-Family Green MBS, demonstrating its commitment to advancing the green bond market and generating measurable environmental, social, and governance (ESG) outcomes. Fannie Mae Single-Family Green MBS meet all of Fannie Mae's underwriting standards and may be TBA-eligible, and specific information about the underlying loans and related resources are readily available on Fannie Mae's website.

Fannie Mae Green Bonds incentivize retrofitting existing properties with efficiency measures, installing renewable energy systems, and building new green-building-certified properties and homes to increase energy- and water-efficiency and reduce greenhouse gas emissions. These activities also help lower utility costs for homeowners, renters, and multifamily property owners while helping to create new jobs and contribute to the broader economy. Fannie Mae Green Bonds offer global investors rigorous, transparent, and high-quality green investment opportunities that positively impact housing infrastructure and the environment by helping to accelerate the transition to a low-carbon economy and a greener housing supply. The company's Green Bond Frameworks are aligned to ICMA Green Bond Principles and have been evaluated as Light Green or better by CICERO, a global provider of green ratings for bonds.

For more information on Fannie Mae's Green Bond Business, please visit the Fannie Mae Green Impact site.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. 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 | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif

Fannie Mae Resource Center
1-800-2FANNIE (800-232-6643)

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SOURCE Fannie Mae

FAQ

What are the key findings of Fannie Mae's Green Bond Impact Report 2021?

The report highlights nearly $88 billion in Green Bonds issued, with significant energy savings and CO2 emissions reductions.

How much did Fannie Mae issue in Green Bonds in 2020?

In 2020, Fannie Mae issued approximately $13 billion in Multifamily Green Mortgage-Backed Securities.

What environmental benefits are reported by Fannie Mae in their Green Bond report?

Fannie Mae reported saving 9.5 billion kBtu of energy and preventing 634,000 metric tons of CO2 emissions.

How has Fannie Mae's Green Bond initiative impacted the economy?

The initiative has resulted in $9.5 billion in wages paid for constructing or retrofitting properties.

What is the total amount of Green Bonds issued by Fannie Mae since 2012?

Fannie Mae has issued nearly $88 billion in Green Bonds since 2012.