Global Debt Facility
This Pricing Supplement relates to the Debt Securities described below (the "Debentures") and should be read in conjunction with the Offering Circular, dated January 6, 1997 (the "Base Offering Circular"), and a Supplement thereto dated August 12, 1997 (the "August Supplement" and, together with the Base Offering Circular, the "Offering Circular"), relating to the Global Debt Facility of the Federal National Mortgage Association ("Fannie Mae" or the "Corporation"). Unless otherwise defined herein, capitalized terms used herein have the meanings given 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 THE CORPORATION.
Certain Securities Terms
1. Title: 6.16% Debentures Due August 7, 2028
2. Form
? 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: Fannie Mae will issue $726,442,000 aggregate original principal amount of Debentures to Deutsche Bank Securities Inc. ("Deutsche Bank") in exchange for certain outstanding Fannie Mae debt securities obtained by Deutsche Bank in an exchange offer. This Pricing Supplement relates to $587,116,000 aggregate principal amount of Debentures being offered by Deutsche Bank for cash. Deutsche Bank will exchange the remaining $139,326,000 aggregate principal amount of Debentures in the exchange offer.
5. Issue Date: August 6, 1998
6. Maturity Date: August 7, 2028
Amount Payable on the Maturity Date
? Fixed Principal Repayment Amount
? 100% of principal amount
? ___% of principal amount
? Variable Principal Repayment
7. Subject to Redemption Prior to Maturity Date
? No
? Yes
8. Interest Category
? Fixed Rate Securities
? Step Rate Securities
? Variable Rate Securities
? Fixed/Variable Rate Securities
? Zero-Coupon Securities
9. Interest
a. Frequency of Interest Payments
? Annually
? Semiannually
? Quarterly
? Monthly
? Other: ____________
b. Interest Payment Dates: February 7 and August 7 of each year, commencing February 7, 1999
c. Interest rate per annum: 6.16%
Additional Information Relating to the Debentures
1. Identification Number(s)
a. CUSIP: 31359MEA7
b. ISIN: US31359MEA71
c. Common Code: 8982317
d. Other: N/A
2. Listing Application
? No
? Yes
3. Eligibility for Stripping
? No
? Yes: See Annex 1
? Minimum Principal Amount: $2,500,000
4. Additional Tax Information: See Annex 2
Offering
1. Pricing Date: July 29, 1998
2. Method of Distribution: ? Principal ? Agent
3. Applicable Dealer:
Deutsche Bank Securities Inc.
4. Offering Price:
? Fixed Offering Price:
%, plus accrued interest, if any, from the Issue Date
? Variable Price Offering
5. Purchase Price to Applicable Dealers: 99.45% of principal amount*
a. Concession: N/A
b. Reallowance: N/A
Settlement
1. Settlement Date: August 6, 1998
2. Settlement Basis
? Delivery versus payment
? Free delivery
3. Settlement Clearing System
? U.S. Federal Reserve Banks
? DTC
? Euroclear
? Cedel
? Other: _____________
___________
* The purchase price relates only to the Debentures being offered by
Deutsche Bank for cash. In addition to the discount reflected above,
Deutsche Bank received compensation for structuring and conducting the
exchange/cash offer transaction as principal for its own account.
ANNEX 1
TO PRICING SUPPLEMENT DATED JULY 31, 1998
RELATING TO: Eligibility for Stripping
Issue (Title): 6.16% Debentures Due August 7, 2028
ELIGIBILITY FOR STRIPPING
Certain issues of Debt Securities designated by the Corporation, including the Debentures (collectively, the "Eligible Debentures"), will be eligible to be separated ("stripped") into their separate Interest Components and Principal Components (each as defined below) on the book-entry records of the Federal Reserve Bank of New York (the "FRBNY"). The components of an Eligible Debenture are: (i) each future interest payment due on or prior to the Maturity Date (each an "Interest Component") and (ii) the principal payment (the "Principal Component"). The initial or final interest payment on an Eligible Debenture, however, will not be an Interest Component if the applicable Interest Period is shorter or longer than other Interest Periods, based on a 360-day year consisting of twelve 30-day months. In such case, such initial or final interest payment will remain with the Principal Component. Each Interest Component and Principal Component (each a "Component") will receive a CUSIP number.
An issue of Debt Securities that the FRBNY is capable of stripping on its book-entry records may be designated by the Corporation as eligible to be stripped into Components either at the time of original issuance of such Debt Securities or at any time thereafter. The Corporation is under no obligation, however, to designate any issue of Debt Securities as eligible to be stripped into Components. The Corporation will designate the Debentures as eligible to be stripped commencing the Business Day following the Settlement Date.
For an Eligible Debenture to be stripped into Components, the principal amount of the Eligible Debenture must be in an amount that, based on the stated interest rate of the Eligible Debenture, will produce an interest payment of $1,000 or an integral multiple thereof on each Interest Payment Date for such Eligible Debenture. The minimum principal amount required to strip the Debentures is set forth in the Pricing Supplement under "Additional Information Relating to the Debentures—Eligibility for Stripping" and also currently may be obtained by calling the Corporation's Treasurer's Office at (202) 752-7916.
In some cases, certain Interest Components of two or more issues of Debt Securities may be due on the same day. Such Interest Components may have the same or different CUSIP numbers. It currently is expected that most Interest Components due on the same day (regardless of Debt Security issue) will have the same CUSIP number. However, the Corporation may designate Interest Components from an issue of Debt Securities to receive CUSIP numbers different than the CUSIP numbers of Interest Components due on the same day from one or more other issues of Debt Securities. The Corporation also may designate at any time that any or all Interest Components of issues of Debt Securities originally issued on or after a specified time will have CUSIP numbers different than Interest Components of issues of Debt Securities originally issued prior to such time.
A Holder of an Eligible Debenture currently may request that such Eligible Debenture be separated into its Components at any time from the date it becomes eligible to be stripped. The Holder must make a request for separation to the FRBNY and comply with any requirements and procedures, including payment of applicable fees, if any, of the FRBNY in effect at such time.
The Components may be maintained and transferred on the Fed Book-Entry
System in integral multiples of $1,000. Payments on Components will
be made in U.S. dollars on the applicable payment dates (or the succeeding
Business Day if payment on the related Debt Security is made on such succeeding
Business Day as described under "Description of the Debt Securities—Provisions
Relating to All Debt Securities—Business Day Convention" in the Base Offering
Circular) by credit of the payment amount to the account at a U.S. Federal