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Pepper issues $750m PRS

The non-bank has priced its second PRS for 2019, issuing $750 million of bonds backed by Australian mortgages.

Pepper Money has priced its second PRS of 2019 worth $750 million and comprising a mix of prime, near-prime and non-conforming mortgages.

According to Pepper, the PRS is designed to “optimise the funding of its asset originations”.

Following the announcement, Pepper Group’s Australian CEO, Mario Rehayem, commented: “I’m delighted that Pepper has been able to achieve such an impressive result during a busy period in the securitisation market.

“It’s a testament to our brand, our people and the underlying credit quality that we have completed this transaction with such strong investor support.”


Pepper’s Treasurer, Andrew Twyford, thanked investors for their support.

“The transaction was really well supported by both our onshore and offshore institutional investor base,” he said.

“We are particularly excited to continue to see new investors coming into our transactions.

“With favourable market conditions, the strong investor attention across all tranches saw the book well covered with the opportunity to tighten pricing on a number of tranches delivered a pleasing result.”

Pepper also thanked NAB (arranger), Citigroup Global Markets, Societe Generale SA, Natixis Asia Ltd, Commonwealth Bank and Westpac for their work as joint lead managers in distributing the note classes.


The transaction settled on Thursday, 7 November.

Auswide Bank prices $25m Senior Unsecured FRN

Auswide has also been active in the securities market, announcing that it has priced a two-year $25 million senior unsecured floating rate note (FRN) issue.

The security was priced at a margin of 90 basis points over the 90-day bank bill swap rate.

Following the announcement, Auswide Treasurer Dale Hancock said: “The FRN was issued to investors in the capital market under the bank’s existing Debt Issuance Program, with Laminar Capital Pty Ltd acting as sole lead manager.

“The two-year senior FRN assists Auswide Bank to extend the maturity duration of its wholesale funding program.”

Martin Barrett, managing director of Auswide Bank, added that he was pleased with the strong support from investors for the bank’s issuance.

“It provides an effective source of funding and cost of funds efficiency,” he said. “The successful issue will assist with current growth in our housing, consumer and business loan portfolio.”

[Related: La Trobe prices over $1bn RMBS]

Pepper issues $750m PRS
Pepper Money

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