Powered by MOMENTUM MEDIA
Broker Daily logo

Pepper prices latest securitisation at $500m

Pepper prices latest securitisation at $500m
expand image

The non-bank lender has priced its fifth residential mortgage-backed security transaction for the year, bringing 2022’s total sum to $3 billion.

The transaction is currently expected to settle on Thursday (28 July).

According to Pepper Money (Pepper), NAB was the arranger and joint lead manager for this latest RMBS transaction (PRS 33). 

Commonwealth Bank, Macquarie Bank, Standard Chartered Bank and Westpac were also joint lead managers, while RBC Capital Markets was the co-manager.

==
==

Speaking of the transaction, Pepper chief executive Mario Rehayem commented that it reflects the lender’s recent upwards momentum. 

“The success of PRS 33 reflects the strong, ongoing investor support for Pepper Money,” Mr Rehayem said. 

“As one of Australia’s leading non-bank lenders, we continue to demonstrate the strength of the business's ability to grow given the scale and depth of our funding capabilities." 

The non-bank’s treasurer Anthony Moir added that this latest transaction was, in part, the result of Pepper’s network. 

“Our access to a global investor base, strong historical track record and deep relationships have once again resulted in a positive outcome for Pepper Money given the more challenging market conditions,” Mr Moir said.  

Pepper has said that this latest transaction brings the total amount raised in the securitisation markets in 2022 to $3 billion.

In March, when Pepper completed the preceding RMBS transaction (PRS 32), which also settled at $500 million, this total public market figure was $1.5 billion.

NAB was also the arranger and joint lead manager of this previous transaction, with RBC Capital Markets again being the co-manager.

Last month, Pepper announced it had settled its first social bond, raising $300 million to finance loans that “deliver positive social outcomes”.

“Since inception, Pepper Money’s mission has been to help people succeed. We challenge the way loans are designed and distributed, focusing on the underserved and undervalued segments — those customers that traditional banks do not cater to,” Mr Rehayem said at the time. 

“Our social bond raising reinforces the fundamental principles of our business, which are to drive financial inclusion through innovation and to seek to lead the industry in making a positive contribution to society.”

Following the settling of this social bond, Pepper’s total public market figure jumped to $2.5 billion. 

Pepper has said its PRS program comprises of a mix of prime and non-conforming mortgages and is “designed to optimise the funding of its Australian mortgage originations”.

[Related: Pepper prices 1st social bond]

More on Lender
05 December 2024
In this episode of Business Accelerator hosts, Alex Whitlock and Jason Back analyse the factors that make a ...
04 December 2024
The major has revealed a new initiative to make it easier for business customers to access clean energy and work towards ...
04 December 2024
Shift has announced the appointment of Praveenesh (Prav) Pala as its new chief financial officer (CFO), effective ...