We consider the E ₈ × E ₈ heterotic string theory compactified on Calabi-Yau manifolds with bundles containing abelian factors in their structure group. Generic low energy consequences such as the generalised Green-Schwarz mechanism for the multiple anomalous abelian gauge groups are studied. We also compute the holomorphic gauge couplings and induced Fayet-Iliopoulos terms up to one-loop order, where the latter are interpreted as stringy one-loop corrections to the Donaldson-Uhlenbeck-Yau condition. Such models generically have frozen combinations of Kähler and dilaton moduli. We study concrete bundles with structure group SU(N) × U(1)^M yielding quasi-realistic gauge groups with chiral matter given by certain bundle cohomology classes. We also provide a number of explicit tadpole free examples of bundles defined by exact sequences of sums of line bundles over complete intersection Calabi-Yau spaces. This includes one example with precisely the Standard Model gauge symmetry.