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Freddie Mac Multifamily Impact Bonds Report Details Benefits of $5 Billion of issuance in Green, Social and Sustainability Investments

MCLEAN, Va., April 21, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today released a report detailing the impact of its more than $5 billion in Green, Social and Sustainability Bonds issuances since 2019. The Impact Bond series offers investors an opportunity to support multifamily properties that address persistent housing challenges and environmental issues. All told, Freddie Mac Multifamily issued $3.3 billion in Green Bonds, $874 million in Social Bonds and $971 million in Sustainability Bonds through December 31st, 2020.

“Freddie Mac’s Impact Bond series is a prime example of our ongoing commitment to improving and preserving the affordable housing while reducing renter utility costs through water and energy efficiencies that help the environment too,” said Robert Koontz, the head of Capital Markets for Freddie Mac Multifamily. “These bonds provide investors with an opportunity to help support safe, quality workforce and affordable housing that is fundamental to establishing sustainable communities.”

Below find key highlights from the three bond areas:

  • Green Bonds: Green Bonds focus on making efficiency improvements to workforce housing, preserving the housing stock by implementing updates that have an environmental impact and cost savings benefit. Tenants in these properties are projected to save an average of $261 per unit annually through lower utility costs. Moreover, water improvements are projected to save over 370 million gallons of water per year which is equivalent to the annual water usage for over 4,000 households and energy reductions are projected to save enough energy to power 7,200 homes (264 million kBtu).

  • Social Bonds: Social Bonds focus on supporting affordable housing by providing liquidity to financial institutions with a distinct mission of addressing affordable housing challenges or providing financing targeted towards underserved populations. 73 of the loans supported properties targeting underserved populations including disabled, seniors, farmworkers, homeless, veterans and transitional. Additionally, 79% of units are affordable to families earning 60% AMI or less.

  • Sustainability Bonds: Sustainability Bonds are intended to attract capital to support economic mobility for residents and economic growth and sustainability in communities. 73 percent of units are affordable to families earning 60% AMI or less. 67% of mixed-income properties financed are in Areas of Concentrated Poverty, which can help improve residential economic diversity leading to greater economic and social mobility within the community.

To view the full report, follow this link.

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income.   Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

MEDIA CONTACT: Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com
Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com