Freddie Mac Multifamily Announces More Than $20 Billion in Impact Bonds Issued Since Program Inception

BY GlobeNewswire | AGENCY | 04/16/24 01:00 PM EDT

MCLEAN, Va., April 16, 2024 (GLOBE NEWSWIRE) -- Freddie Mac Multifamily?s Impact Bonds program?has issued over $20 billion in Green, Social and Sustainability bonds since the program?s creation in 2019. The announcement of the milestone comes as the company released its annual Impact Bonds Report.

Freddie Mac?s Impact Bonds support multifamily properties that address persistent housing challenges, particularly environmental and social issues, and provide additional transparency to investors.

?Crossing the $20 billion threshold for Impact Bonds issued demonstrates Freddie Mac?s enduring commitment to meeting our mission and tackling issues that impact renters across the nation,? said Robert Koontz, senior vice president for Multifamily Capital Markets. ?Despite challenging market conditions, we made a tangible impact in 2023 and expect to see steady results in 2024, thanks to the support of like-minded investors. We will continue adapting and developing innovative solutions to support borrowers and tenants while meeting the needs of the market."

In 2023, a majority of Freddie Mac Multifamily?s Impact Bond issuances were from Social Bonds, totaling over $2.6 billion. Over $567 million of these Social Bonds provided liquidity to Small Financial Institutions with a distinct mission of addressing affordable housing challenges. Through this vehicle, Freddie Mac enables those institutions to create a positive impact, which is especially critical in volatile markets.

Cumulatively, since 2019, Impact Bonds proceeds financed 183,384 units affordable to tenants earning at or below 80% of area median income as well as water improvements projected to save over 570 million gallons of water per year, the equivalent of filling the Lincoln Memorial Reflecting Pool in Washington, D.C. 84 times.

Freddie Mac Multifamily offers Impact Bonds that target a specific impact area relating to certain environmental or social challenges and maintains strict selection criteria and detailed prescreening procedures for each offering.

The Impact Bonds Report highlights properties and impacts across Green, Social and Sustainability Bonds. The full text of the report is available on Freddie Mac?s website

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?s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:

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Source: Freddie Mac

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.