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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 only mortgage loans backed by newly constructed single-family residential homes with ENERGY STAR® certifications that meet or exceed the national program requirements for ENERGY STAR Certified Homes, Version 3.0. These offerings are the latest addition to Fannie Mae’s Green Bond program.

Highlights:

  • The ENERGY STAR Certification for New Homes (Residential) designation 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

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

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 multifamily green bond issuances in 2012 – 2019 are projected to generate positive environmental, social, and financial outcomes.

Download our 2019 Green Bond Impact Report to learn more.

 Environmental  Social  Financial

All numbers are based on projected impacts.

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7.8B

kBtu of source energy saved

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7.7B

gallons of water saved

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528K

metric tons of greenhouse gas emissions prevented

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126M

tenant costs saved, or an average of $178 per family per year 

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770K

units retrofitted or green building-certified

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180K

well-paid jobs created or supported

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7.6B

wages paid to construct or retrofit properties, contributing $15.6 billion to U.S. GDP

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$335M

investment committed by borrowers for energy and water efficiency upgrades at 3,200 properties

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$2.99

economic output per dollar invested

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.