Good Business
Freddie Mac Targeting ESG Investors With Green Mortgage Bonds
- First security in a new series of CMBS set to be sold June 17
- Bonds backed by loans to borrowers who make green improvements
Photographer: Chris Rank/Bloomberg
This article is for subscribers only.
Freddie Mac is making its first foray into green bonds, starting a new commercial mortgage-backed security program backed by loans to apartment building owners who agree to make their properties more environmentally friendly.
The first bond in the new KG series of CMBS -- designed to meet the needs of money managers who use environmental, social and governance criteria to screen potential investments -- will be $475 million in size and sold June 17.