In what the CEO has termed a “significant milestone,” a leading non-bank lender has priced its first term transaction of asset finance receivables under its newly created platform.
The SPARKZ 1 transaction delivered $511.6m of funding for Pepper Group.
The positive reception from a core group of investors enabled Pepper to launch a fully placed book, ahead of pricing.
“In under five years, Pepper has built an asset finance portfolio of over $2bn, from a standing start in early 2015. It’s our ability to identify market niches underserved by the banks that has allowed us to achieve such impressive growth,” said Pepper chief commercial officer, Bernie Campbell.
Pepper’s asset finance portfolio includes motor vehicles and equipment, which are distributed via car dealers and commercial, consumer and mortgage brokers.
Pepper Australia CEO Mario Rehayem said, “This securitisation provides us with funding that can sustain the scalable asset finance business model we have built and allows us to continue to offer competitive pricing in market.
“Pepper’s longstanding track record in the RMBS market and its expertise in underwriting and originating multiple asset classes has once again been showcased to the market with the execution of SPARKZ 1.”
According to Pepper treasurer, Andrew Twyford, the strong debut has the group planning to offer a second transaction to the broader market later in the year.
