By Marisa Wong
Morgantown, W.Va., Feb. 16 – Fannie Mae is offering $1,004,983,598 of series 2017-M2 pass-through certificates. The transaction includes two tranches, A1 and A2, that are backed by 30 loans originated under Fannie Mae’s green financing business and securitized as green delegated underwriting and servicing mortgage-backed securities (green DUS MBS), according to a press release.
This is Fannie Mae’s first guaranteed multifamily structures (GeMS) real estate mortgage investment conduit (Remic) tranches backed exclusively by its green MBS collateral, according to a press release.
Details of the tranches are listed in the table below.
Citigroup Global Markets, Inc. is the lead manager.
This is the firm’s second multifamily DUS Remic in 2017 under its Fannie Mae GeMS program, according to the release.
“We’re excited to offer the first Green Agency CMBS deal,” Josh Seiff, Fannie Mae’s vice president of capital markets and trading, said in the release. “We had a number of new investors who focus on green and socially responsible investing participate in this deal.
“We’re proud to be able to lead the way with a multifamily mortgage product that truly benefits communities as well as borrowers, lenders, and investors.”
Fannie Mae said its multifamily green financing business provides financing through several different green product offerings, encouraging apartment building owners to make energy- and water-savings improvements to their properties. In addition, the Fannie Mae green financing business provides financing to properties holding a third-party, Fannie Mae-approved, green building certification.
Chrissa Pagitsas, director of the multifamily green financing business, said in the release, “The M2 A1 and A2 tranches included loans secured by collateral that achieved a green building certification such as LEED, Energy Star, or Green Globes, or was targeting a 20% or greater reduction in energy or water consumption. The end result will be better quality housing with a lower environmental impact and positive cash flows.”
Fannie Mae introduced the green MBS product to the market in 2012 and has issued over $3.5 billion in 2016, the release noted.
| Issuer: | Fannie Mae
|
| Issue: | Series 2017-M2 pass-through certificates
|
| Amount: | $1,004,983,598
|
| Lead manager: | Citigroup Global Markets, Inc.
|
| Co-managers: | Nomura, KGS-Alpha Capital Markets, CastleOak Securities LP
|
| Pricing date: | Feb. 13
|
| Settlement date: | Feb. 28
|
|
|
| 2017-M2
|
| Class | Amount | Weighted average life | Coupon Coupon type | Spread | Offered price
|
| FA | $393,280,663 | 6.51 years | 1.299% | Floating (one-month Libor) | 53 bps | 99.9
|
| A1 | $75 million | 6.06 years | 2.784% | Weighted average | 50 bps | 100.6
|
| A2 | $536,702,935 | 9.82 years | 2.784% | Weighted average | 66 bps | 97.8
|
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