Fannie Mae Prices $715 Million Green Multifamily DUS REMIC (FNA 2021-M1G) Under Its GeMS Program

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) priced a $715 million Green Multifamily DUS^® REMIC under its Fannie Mae GeMS™ program on March 23, 2021. This issuance marks the fourth of 2021, contributing to over $90 billion in Multifamily MBS backed by green financing. The new bond aims to attract ESG-focused investors, offering 10-year, call-protected DUS collateral. Fannie Mae also updated its naming convention for better transparency. The total offering features various classes with guaranteed full payment of interest and principal.

Positive

• Successfully priced $715 million Green Multifamily DUS REMIC, indicating strong market activity.
• Cumulative issuance of over $90 billion in Multifamily MBS highlights ongoing commitment to green financing.
• Enhanced investor experience through naming convention updates for better identification of Green bonds.

Negative

• None.

WASHINGTON, March 26, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $715 million Green Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on March 23, 2021. FNA 2021-M1G marks the fourth Fannie Mae GeMS issuance of 2021.

In the second decade of its Multifamily Green Financing business, Fannie Mae remains committed to generating positive environmental and social impact through our two Multifamily Green product types: our Green Building Certification (GBC) program and Green Rewards, our energy- and water consumption-reduction program. Combined, we have issued more than $90 billion of Multifamily MBS backed by these financing products. Through the Fannie Mae GeMS program, we have re-securitized an additional $11.7 billion in REMICs backed by Green MBS. As part of our efforts to improve the investor experience and add transparency, Fannie Mae changed the naming convention of the Green GeMS issuance to include a 'G' in the shelf name, so investors can more easily identify the bonds in the secondary market.

"The 2021-M1G is our 16^th GeMS issuance backed by Green MBS collateral, building off of our $13 billion in Green MBS issued in 2020," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "March has been a busy issuance month and we were pleased with the investor focus on the M1G. The deal offers the growing number of ESG-related accounts in the market the ability to invest in 10-year, call-protected DUS collateral originated through our market-leading green financing program."

The FNA 2021-M1G joins the FNA 2021-M1S as the second GeMS of the year issued under Fannie Mae's recently published Sustainable Bond Framework, which covers Fannie Mae's issuance of sustainable, social, and green bonds and incorporates Fannie Mae's Multifamily Green Bond Framework. The Fannie Mae Green MBS program has received a "light green" second party opinion (SPO) from CICERO. The Sustainable Bond Framework, Green Bond Framework, CICERO's SPO, issuance tracking, and other resources can be found on Fannie Mae's new Sustainable Bonds website, launched to provide investors a single site for Multifamily and Single-Family green and social bonds.

All classes of FNA 2021-M1G 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
A1	$65,000,000	7.16	1.404	Fixed/AFC	S+6	99.99
A2	$650,362,729	9.60	1.561	WAC	S+20	97.41
X	$65,000.000	7.05	0.156	WAC IO	Not Offered	Not Offered
Total	$715,362,729

 

Group 1 Collateral
UPB:	$715,362,729
Collateral:	40 Green Fannie Mae DUS MBS
Geographic Distribution:	TX (25.2%), CA (19.7%), IL (14.3%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.92x
Weighted Average Loan-to-Value (LTV):	66.1%

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M1G) available on the Fannie Mae GeMS Archive page.

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

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Fannie Mae Resource Center
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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.

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SOURCE Fannie Mae

FAQ

What is the purpose of the $715 million Green Multifamily DUS REMIC issued by Fannie Mae (FNMA)?

The $715 million Green Multifamily DUS REMIC aims to fund environmentally sustainable housing projects and attract ESG-focused investors.

When was the Green Multifamily DUS REMIC priced?

The Green Multifamily DUS REMIC was priced on March 23, 2021.

How much Multifamily MBS has Fannie Mae issued under its green financing program?

Fannie Mae has issued over $90 billion in Multifamily MBS backed by green financing products.

What is the significance of the naming convention change for Fannie Mae's Green GeMS issuance?

The naming convention change helps investors easily identify Green bonds in the secondary market.

How does the $715 million REMIC issuance impact Fannie Mae's financial standing?

The issuance reflects strong market interest and supports Fannie Mae's strategy in green financing, potentially enhancing its financial standing.