Pepper Money prices its second public securitisation in 2022 -raising a further $500 million

Posted 24-03-2022


Today, Pepper Money Limited (ASX:PPM) priced a $500 million residential mortgage-backed security transaction (PRS 32) that will settle on 30 March 2022.

Pepper Money’s PRS program comprises a mix of Non-Conforming and Prime mortgages and is designed to optimise the funding of its Australian mortgage originations.

Pepper Money’s CEO Mario Rehayem, said: “It is pleasing to see continued support from debt capital market investors for both Pepper Money’s Prime and Non-Confirming issuances, despite the tougher market conditions".

“This deal supports the ongoing growth opportunities available to us, in particular in the underserved segments of the mortgage market where we have a strong track record in creating financial inclusion by supporting self-employed and small business customers.  We continue to see strong demand for all our products”.

Pepper Money’s Treasurer Anthony Moir, said: “This was a positive result given market conditions and is again a testament to Pepper Money’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 Money thanks National Australia Bank Ltd (Arranger and Joint Lead Manager), Commonwealth Bank of Australia, Hong Kong and Shanghai Banking Corporation Limited, (Sydney Branch) and Westpac Banking Corporation for their work as Joint Lead Managers, and RBC Capital Markets as Co-Manager.

This is Pepper Money’s first Non-Conforming PRS deal for 2022, and the second public securitisation for the year bringing funding raised from public markets to date in 2022 to $1.5 billion.

The transaction will settle on 30 March 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+

65bps

130bps

190bps

240bps

260bps

300bps

475bps

700bps

N/A

 

For more information please contact:

Investor relations contact
Catherine Buckmaster
cbuckmaster@pepper.com.au
P: +61 2 7227 3879

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