PRICING SUPPLEMENT DATED AUGUST 4, 1999

(To Offering Circular dated December 21, 1998)
 
 

Benchmark NotesSM


 
 

This Pricing Supplement relates to the Debt Securities described below (the "Notes"). You should read it together with the Offering Circular dated December 21, 1998 (the "Offering Circular"), relating to the Global Debt Facility of the Federal National Mortgage Association ("Fannie Mae"). Unless defined below, capitalized terms have the meanings we gave to them in the Offering Circular.

The Notes, together with interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or of any agency or instrumentality thereof other than Fannie Mae.

Certain Securities Terms

1. Title: 6.50% Notes Due August 15, 2004

2. Form

x Book-Entry

¨ Global

¨ DTC Global Securities

¨ Other Global Securities

3. Specified Payment Currency

a. Interest: U.S. dollars

b. Principal: U.S. dollars

4. Aggregate Original Principal Amount: $3,000,000,000

5. Issue Date: August 6, 1999
 
 
 
 

______________

"Benchmark Notes" is a service mark of Fannie Mae.
 
 
 
 

6. Maturity Date: August 15, 2004

Amount Payable on the Maturity Date

x Fixed Principal Repayment Amount

x 100% of principal amount

¨ ___% of principal amount

¨ Variable Principal Repayment Amount 7. Subject to Redemption Prior to Maturity Date

x No

¨ Yes

8. Interest Category

x Fixed Rate Securities

¨ Step Rate Securities

¨ Variable Rate Securities

¨ Fixed/Variable Rate Securities

¨ Zero-Coupon Securities

9. Interest

a. Frequency of Interest Payments

¨ Annually x Semiannually

¨ Quarterly

¨ Monthly

¨ Other: ____________

b. Interest Payment Dates: February 15th and August 15th of each year, commencing February 15, 2000 c. Interest rate per annum: 6.50%
 
 
 
 

Additional Information Relating to the Notes

1. Identification Number(s)

a. CUSIP: 31359MEX7

b. ISIN: US31359MEX74

c. Common Code: 1007759

d. Other: N/A

2. Listing Application

x No

¨ Yes

3. Eligibility for Stripping

¨ No

x Yes

x Minimum Principal Amount: $400,000

4. Reopenings - We may increase the size of this issue of Notes from time to time without the consent of any Holder of a Note by issuing additional Notes with the same terms (other than the date of issuance, interest commencement date and offering price, which may vary). We hope to reopen this issue of Notes one or more times within six months of the Settlement Date to increase the size and liquidity of the issue. We intend to reopen this issue of Notes during that six month period in any month when there is requisite investor demand and the reopening is consistent with our funding needs and overall market conditions. The evaluation of these criteria and, consequently, the decision whether to reopen the Notes are in our sole discretion. We cannot assure you that we will reopen this issue of Notes or, if reopened, what the total issue size will be.
 
  Offering

1. Pricing Date: August 4, 1999

2. Method of Distribution: x Principal ¨ Agent

3. Applicable Dealers Underwriting Commitment

Merrill Lynch, Pierce, Fenner & Smith Incorporated                $ 863,333,000

J.P. Morgan Securities Inc.                                      843,333,000

Morgan Stanley & Co. Incorporated                            818,334,000

Bear, Stearns & Co. Inc.                                                70,000,000

Credit Suisse First Boston Corporation                            70,000,000

Deutsche Bank AG London                                      70,000,000

HSBC Securities, Inc.                                                80,000,000

Goldman, Sachs & Co.                                                95,000,000

Lehman Brothers Inc.                                                70,000,000

Salomon Smith Barney Inc.                                       20,000,000

Total                                                               $3,000,000,000

a. Representatives: Merrill Lynch, Pierce, Fenner & Smith Incorporated

J.P. Morgan Securities Inc.

Morgan Stanley & Co. Incorporated

b. Stabilizing Manager: Morgan Stanley & Co. Incorporated

4. Offering Price:

x Fixed Offering Price: 99.803%, plus accrued interest, if any, from the Issue Date

¨ Variable Price Offering

5. Purchase Price to Applicable Dealers: 99.703% of principal amount

a. Concession: .08%

b. Reallowance: N/A

Settlement

1. Settlement Date: August 6, 1999

2. Settlement Basis

x Delivery versus payment

¨ Free delivery

3. Settlement Clearing System

x U.S. Federal Reserve Banks

¨ DTC

¨ Euroclear

¨ Cedel


 
 

ANNEX 1

TO PRICING SUPPLEMENT DATED AUGUST 4, 1999

Issue(Title): 6.50% Notes Due August 15, 2004
 
 


UNITED STATES TAXATION

We have engaged Arnold & Porter as special tax counsel to review the discussion in the Offering Circular under the heading "United States Taxation." They have given us their written legal opinion that the discussion, when read with the following paragraph, correctly describes the principal aspects of the United States federal tax treatment of investors who purchase the Notes described in the Offering Circular. This discussion, and the discussion in the Offering Circular, are general discussions that may not apply to your particular circumstances.
 
 

New Effective Date for Withholding and Information Reporting Regulations

The Offering Circular describes new regulations relating to withholding, backup withholding and information reporting with respect to payments to non-U.S. Persons. In April 1999, the IRS announced a delay in the effective date of those regulations. Pursuant to the IRS announcement, the regulations will be effective for payments made after December 31, 2000. The IRS announcement also delayed the date on which certain U.S. information reporting rules will apply to the foreign office of a foreign broker that is a foreign partnership with specific connections with the U.S. These rules will now apply to payments made by such partnerships after December 31, 2000.