Pepper Money prices its first social bond of $300 million

Posted 02-06-2022


On 1 June 2022, Pepper Money Limited (Pepper Money) (ASX: PPM) priced its first Social Bond, raising $300 million.  This is the fourth public securitisation transaction completed by Pepper Money year to date and brings the total amount raised by Pepper Money in the securitisation markets this calendar year to $2.5 billion.

The Social Bond raising will provide Pepper Money with funding to finance loans that deliver positive social outcomes. The raising complements Pepper Money’s Prime 2022-1 raising which included a $330 million green tranche. 

Pepper Money's CEO Mario Rehayem, said, “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.  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." 

Pepper Money's Treasurer, Anthony Moir said “I am delighted in the market demand for Social Bonds, particularly in light of current market conditions.  It is a very positive result as we continue to build the strength of our 2022 funding programme.”

Pepper Money thanks National Australia Bank Limited, (Arranger, Sustainability Coordinator and Joint Lead Manager), Commonwealth Bank of Australia and Westpac Banking Corporation for their work as Joint Lead Managers, and RBC Capital Markets as Co-Manager.

The transaction will settle on 9 June 2022. The pricing details of the notes are as follows:

Note Class

A1-s

A1-a

A2

B

C

D

E

F

G

Coupon 1M BBSW+

1.00%

1.60%

2.15%

2.50%

2.75%

3.15%

5.15%

7.15%

ND

 

For more information please contact:

Investor relations contact
Gordon Livingstone                                                      
Reunion Capital Partners                                      
M: 0417 695 138 
glivingstone@reunioncapital.com.au

Media contacts
Helen Karlis                                                        
Domestique Consulting                                      
M: 0419 593 348 
helen@domestiqueconsulting.com.au

Celia Moore                                                        
Domestique Consulting                                      
M: 0432 344 069
celia@domestiqueconsulting.com.au