WASHINGTON Fannie Mae announced on Thursday that it will begin offering senior debt securities to individual investors.
The first issue of security, the Fannie Mae Investment Notes, will begin on May 14. Fannie said it expects to offer several issues of Investment Notes on a weekly basis, with original maturities of between one and 30 years, and with varying interest rates, interest payment dates, maturity dates, and redemption provisions. The notes will be sold in minimum denominations of $1,000.
With the introduction of Investment Notes, Fannie Mae will provide the individual investor with a high credit-quality investment alternative, said Timothy Howard, Fannie Maes executive vice president and chief financial officer.
Merrill Lynch & Co. is lead manager for the offerings.