Pepper Money has successfully priced a $750 million residential mortgage-backed security transaction, named Pepper Prime 2023-1, with settlement scheduled for Nov. 9.
The transaction comprises residential prime mortgages originated by Pepper Money and aims to bolster the growth of the ASX-listed non-bank’s prime mortgage business in Australia.
Pepper Money CEO Mario Rehayem (pictured above left) was pleased with the strong demand for Pepper Prime 2023-1, which he said reflected ongoing investor support for Pepper Money’s securitisation programs.
“Since the beginning of 2023 we have completed seven securitisation transactions, raising $5.4 billion in total including Pepper Prime 2023-1,” Rehayem said.
“Pepper Money’s mission is to ‘help people succeed.’ Our prime mortgage product [is] providing customers with a flexible solution as an alternative to traditional bank products. Our disciplined and innovative approach, coupled with our strong credit, funding, distribution, and technology has seen our business grow from a specialist lender in 2000 to a leading non-bank lender in mortgages and asset finance today.”
Anthony Moir (pictured above right), Pepper Money’s treasurer, underlined the company’s successful track record, having completed 61 securitisation transactions, raising more than $38.6bn since 2003.
“The A1 notes in this transaction were issued to a single offshore investor highlighting the strong demand for Pepper Money’s Prime mortgage program. “The continued support from debt capital market investors for both Pepper Money’s RMBS and ABS issuances demonstrates the strength and longevity of our relationships and our ability to continue to fund Pepper Money’s ongoing growth.”
This marks Pepper Money’s first prime mortgage transaction for 2023. Pricing details for the notes are as follows:
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
