Fannie Mae issued the market’s first-ever secured overnight financing rate (SOFR) securities.
The three-tranche $6 billion SOFR debt transaction is scheduled to settle on July 30, 2018.
“Our objective is to accelerate the development of the SOFR market, and we encourage other issuers in the debt markets to follow,” said Nadine Bates, senior vice president and treasurer of Fannie Mae.
The floating rate notes, offered in three maturities, were met with strong investor demand from a broad and diverse investor base.
| Maturities |
Amount |
Pricing |
| 6-month |
$2.5B |
SOFR + 8 bps |
| 12-month |
$2.0B |
SOFR + 12 bps |
| 18-month |
$1.5B |
SOFR + 16 bps |
Barclays Capital Inc., Nomura Securities International, Inc., and TD Securities USA are the lead managers on this inaugural transaction.
