Fannie Mae Announces $2.0 Billion Secured Overnight Financing Rate (SOFR) Transaction, Encouraging Market Participation

Third SOFR Offering Grows Investor Base

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Jan 28, 2019, 15:05 ET

WASHINGTON, Jan. 28, 2019 /PRNewswire/ -- Today, Fannie Mae announced and priced its third Secured Overnight Financing Rate (SOFR) offering, an 18-month $2.0 billion issuance.

Investor Distribution. Indicative as of January 28, 2019. Numbers may not foot due to rounding.

"With our first SOFR security maturing at the end of this month, it was an opportunity to come to market. Among our three offerings, we are pleased that with each concurrent deal, we have seen increased demand. We continue to see new investors in our deals, as well as significant interest in the market from both the issuer and investor sides. These are great gauges of market progress," said Nadine Bates, Senior Vice President and Treasurer, Fannie Mae.

"This third offering, marking Fannie Mae's seventh SOFR security, increases the liquidity of the SOFR curve. The more maturity points there are, the better equipped the market will be to adopt the new rate," said Bates. "It is important to maintain momentum in the SOFR market, and Fannie Mae is proud to demonstrate commitment to the Alternative Reference Rate Committee's (ARRC) efforts to develop LIBOR-alternatives."

Over $40 billion of SOFR-linked securities have been issued in the marketplace since Fannie Mae's inaugural offering last July.

Transaction Summary

Maturities	CUSIP	Amount	Pricing
18-month	3135G0V26	$2.0 B	SOFR + 6 bps

Barclays Capital Inc., Citigroup Global Markets Inc., and Nomura Securities International, Inc. are the lead managers on this transaction. CastleOak Securities and Mischler Financial Group are selling group members.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Offering Circular, and no reliance may be placed on the completeness or accuracy of the information contained in this press release.

You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

SOURCE Fannie Mae