Houses aerial view

Green Bonds

Invest in a sustainable future with a leader in green financing

At Fannie Mae, our mission is clear: to deliver stability and affordability to America’s housing market. We do so primarily by purchasing mortgage loans from lenders and securitizing them into mortgage-backed securities (MBS), which we then guarantee.

Our Green Financing Business supports the Single-Family and Multifamily housing market by financing homes and communities that meet energy and water saving standards. We offer investors green bonds that build upon our mission and positively impact housing infrastructure and the environment.

Explore our green bonds

Offered through our Multifamily Delegated Underwriting and Servicing (DUS®) business, each MBS is secured most frequently by a single Green loan and features guaranty of timely payments, stable cash flows, and liquidity.

Highlights:

  • Guaranty of timely payment of principal and interest.
  • Stable cash flows that are easy to model.
  • Lower spread volatility relative to other products with similar collateral.
  • Superior call and extension protection.

Since issuing our first Multifamily Green Bond in 2012, Fannie Mae has infused over $85 billion into the global green bonds market through nearly 4,000 individual bonds (through year-end 2020). We also established many of the standards and processes adopted industrywide. As a result, our Multifamily bond framework received a Light Green Second Opinion from CICERO Shades of Green.

Learn more here: Multifamily Green MBS

Green Guaranteed Multifamily Structures (GeMS™) are backed by blocks of previously issued Green DUS MBS and offer collateral diversity, tight maturity profiles, and guaranty of timely payments of principal and interest.

Highlights:

  • Composed of numerous DUS MBS and maintain the characteristics of DUS MBS.
  • More diversified than a single green MBS, featuring either property-type diversity or geographic diversity.
  • Readily customized to accommodate reverse inquiry.
  • Backed by collateral selection with consistent credit quality and tight maturity profiles.
  • Issued several times a year.

Learn more here: Green GeMS

Single-Family Green MBS include either purchase money or refinance mortgage loans backed by newly constructed single-family residential homes receiving approved green building certifications within the last five years.

Highlights:

  • The ENERGY STAR Certification for New Homes (Residential) designation as a baseline because it is a nationally and globally distinguished standard for energy efficiency. Homes awarded with this certification achieve at least 10% more efficiency than homes built to code and a 20% improvement on average.
  • Our Single-Family MBS framework has received a Light Green Second Opinion from CICERO Shades of Green.

Since the launch on April 22, 2020 to commemorate the 50th anniversary of Earth Day, Fannie Mae issued nearly $100 million of Single-Family Green MBS in 2020.

Learn more here: Single-Family Green MBS

For impact at the CUSIP and loan level, click here  .

Investments designed to yield more than financial returns

Learn more about our innovative bonds backed by loans on properties that meet energy- and water- saving standards.

Read our 2020 Green Bond Impact Report

Fannie Mae is a widely recognized issuer of quality, liquid, green investment products that offer long-term income and steady returns.

CICERO Shades of Green

Fannie Mae’s Single-Family and Multifamily Green MBS both received a Light Green Second Opinion from CICERO Shades of Green.

Climate Bonds Initiative

Largest Global Green Bond Issuer Over the Last 10 Years - 2019

Global Capital

Most Impressive Green/SRI ABS Issuer - 2018

Climate Bonds Initiative

Green Bond Framework - 2018

 

U.S. EPA ENERGY STAR

Sustained Excellence Award – 2017, 2018, 2019, 2020, 2021

Prime Corporate ESG Performance

BBB MSCI ESG Ratings

As of 2019, Fannie Mae received an MSCI ESG Rating of BBB.*

Related Links

Green Bonds Positive Impact

Our green bond issuances in 2012 – 2020 are projected to generate positive environmental, social, and financial outcomes.

Download our 2020 Green Bond Impact Report to learn more.

 Environmental  Social  Economic

All numbers are based on projected impacts.

Electricity icon

9.5B

kilo British Thermal Units (kBtu) of source energy saved

Water droplets icon

8.5B

gallons of water saved*

Thermometer decrease icon

634K

metric tons carbon dioxide equivalent (MTCO2e) of GHG emissions prevented

Cost savings icon

$146M

utility cost savings by multifamily tenants, or an average of $184 per family per year*

Coin icon with arrow indicating growth

$843

average homeowner utility cost savings per single-family home per year**

Certification icon

872K

properties retrofitted or green building-certified*

Construction worker icon

224K

well-paid jobs created or supported

Electronic financial statement icon

$9.5B

wages paid to construct or retrofit properties, contributing $19.9 billion to U.S. gross domestic product (GDP)

Leaf icon

$410M

borrower investment commitment for energy and water efficiency measures on 3,696 properties through the Multifamily Green Rewards Mortgage Loans*

Coin icon with arrow indicating growth

$2.83

economic output per dollar invested

*Includes estimated impacts only from Fannie Mae Multifamily Green Bonds.

**Includes estimate impacts only from Fannie Mae Single-Family Green Bonds.

Project Spotlight: Financing solar power at Bayside Palms

In our Green Bond Impact Report, see how Fannie Mae’s Green Financing program is enabling the installation of solar panels on a manufactured housing community that could significantly reduce electricity costs at the property.

Read more

This communication is for informational purposes only. It does not constitute an offer to sell securities. In particular, it does not constitute an offer to the general public in the European Union. Before considering an investment in any Fannie Mae security, prospective investors should obtain and ensure they have read and understood the offering documents and any related disclosure information related to such securities.

The use by Fannie Mae of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Fannie Mae by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.