Pepper Group successfully priced its PRS 26 transaction on 10 June, issuing a planned $700m of bonds backed by Australian mortgages.
Pepper’s PRS program comprises a mix of prime and non-conforming mortgages and is designed to optimise the funding of its asset originations.
“It was very pleasing to see strong appetite across the capital stack and broad participation from a range of investors who see value in investing in Pepper’s RMBS program,” said Andrew Twyford, Pepper treasurer.
“With strong execution across all classes, this transaction is another example of the continuing support the Australian RMBS market is afforded from domestic and offshore bond investors.”
Pepper Australia CEO, Mario Rehayem, also highlighted the “tireless work” of Pepper’s treasury team in securing the positive result.
“The team’s tenacity combined with the reputation of Pepper’s PRS program for quality underlying assets has produced an outstanding result for the business,” he said.
“Pepper Group also wishes to show its appreciation to the Australian Office of Financial Management (AOFM) for its willingness to participate in the transaction, despite no investment being required, and their broader support of the Australian securitisation markets.”
The transaction is scheduled to settle on 18 June 2020.
