Fannie Mae Prices New Issue 2-year Benchmark Notes(r) Due October 30, 2012

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7th October 2010, 10:44am - Views: 879






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MEDIA RELEASE PR41630


Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due October 30, 2012


WASHINGTON, Oct. 7 /PRNewswire-AsiaNet/ --


    The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):



                      2-Year

    Pricing Date      October 6, 2010

    Settlement Date   October 8, 2010

    Maturity Date     October 30, 2012

    Issue Size        $8 billion

    Coupon            0.500%

    Price             99.965

    Yield             0.517%

    Payment Dates     Each October 30th and April 30th, beginning 

                       October 30, 2010

    Spread            +13 basis points / 0.375%  09/30/12 U.S. Treasury

    CUSIP             31398A4T6

    Listing           Application will be made to list the securities on the

                       EuroMTF market of the Luxembourg Stock Exchange



    Barclays Capital Inc., J.P. Morgan & Co. and UBS Securities LLC are the joint

lead managers. The co-managers include, Citigroup Global Markets Inc., Credit Suisse

Securities (USA) LLC, Deutsche Bank Securities Inc., FTN Financial Capital Markets,

MFR Securities, Inc., and Williams Capital Group L.P.


    Fannie Mae exists to expand affordable housing and bring global capital to local

communities in order to serve the U.S. housing market. Fannie Mae has a federal

charter and operates in America's secondary mortgage market to enhance the liquidity

of the mortgage market by providing funds to mortgage bankers and other lenders so

that they may lend to home buyers. Our job is to help those who house America.


    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

that 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 the light of your circumstances and financial position. If you are in any

doubt you should consult an appropriately qualified

financial advisor.


    Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of this mark

is prohibited.



SOURCE: Fannie Mae


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    CONTACT: Katherine Constantinou of Fannie Mae, +1-202-752-5403








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