Pepper’s PRS program comprises a mix of non-conforming and prime mortgages and is designed to optimise the funding of its Australian mortgage originations.
The non-conforming transaction (which is scheduled to settle on 19 August 2021) is Pepper’s third public securitisation in calendar 2021 providing the Company in aggregate, with over $2.4 billion of funding and a strong funding foundation to drive its future growth.
Pepper Money CEO Mario Rehayem said, “We are delighted to see strong support from new and long-term investors in debt capital markets for our Prime and Non-Confirming issuances.
“Our issuance this year positions us well to leverage the opportunities for ongoing growth available to us, in particular in the underserved segments of both the mortgage and asset finance markets, where we have a strong track record and compelling customer value propositions.”
The A1 notes priced at the tightest level achieved by Pepper Money since before the GFC for a non-conforming transaction of a similar tenor.
Pepper Money Treasurer Anthony Moir said, “The strong market response to our PRS30 transaction is again testament to Pepper’s well-established investor relationships and exemplary track record of calling every term deal at the first opportunity and providing an attractive investment proposition for investors.”
Pepper thanks Commonwealth Bank of Australia (Arranger), Macquarie Bank and National Australia Bank and Westpac Banking Corporation for their work as Joint Lead Managers.