Asian investors drive US$179b Fannie Mae debt

Fannie Mae, the world's largest non-bank financial services company, said international demand for its debt issues is being driven by Asian investors.

Frank Raines, chairman and chief executive, said international investors, including Asian institutions, had purchased one-third of the company's US$179.7 billion in non-callable benchmark notes and bonds during the past two years.

'Since the inception of the benchmark programme, international investors have purchased 33 per cent of all benchmark notes and benchmark bonds issued, with approximately 14 per cent going to Asian investors.'

According to Mr Raines, Fannie Mae debt is particularly attractive to Asian investors as the securities are liquid, US dollar-denominated and carry a high credit quality.

Fannie Mae - a United States government-sponsored enterprise set up to increase nationwide access to home mortgages - said it would issue sufficient publicly traded, externally rated subordinate debt twice a year to bring the sum of its core capital and outstanding subordinated debt to a minimum of 4 per cent of on-balance sheet assets by the end of a three-year phase-in period.

Mr Raines said the company had been in Beijing talking to investors and banking institutions about its product.