Supporting our nation’s communities is the heart of our mission and requires continual innovation. And, while Freddie Mac Multifamily is known for an array of Optigo® loan offerings that support stability, liquidity and affordability, I want to share with you the advances we continue to make with our securities.
First, some background: In the first half of 2020, over 88% of the multifamily units we financed were affordable to moderate- and low-income families. We’re pleased with this accomplishment, and value the partnership of our Optigo investors and lenders in supporting affordable and sustainable communities.
You’re likely familiar with our Green Advantage® program, through which our Optigo lenders finance energy- and water-efficient improvements to workforce properties. As a complement, last year we introduced our K-G series of Green Bonds – they comprise solely Green Advantage loans and make investments in green, workforce multifamily properties available to our investors. We also joined Nasdaq’s Sustainable Bond Network advisory board to help foster thought leadership and initiatives that are environmentally and socially sustainable.
And to build on that momentum, we are introducing our first Social Bonds to investors this month. We’ll use the proceeds from these bonds to finance properties that house underserved targeted populations, while supporting specialized affordable housing developments and Minority and Women-Owned Business borrowers. More importantly, they will also be used to increase liquidity to social impact institutions that provide capital for underserved communities and promote economic opportunity.
We have long financed these types of properties and supported these groups, but our new Social Bonds series expands that support to provide socially-minded investors with a more focused way to invest, all while attracting more capital to address these needs.
We are proud of our achievements in supporting the underserved, promoting green rental housing and creating inclusive economic opportunities in the multifamily industry. However, we also know that our work to develop new ways can never stop — both for our loan offerings and our securities. Our new Social Bonds will just be the latest in a continuing series of innovations.
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