Powered by MOMENTUM MEDIA
subscribe to our newsletter

Pepper Group prices $700m RMBS

The non-bank has successfully priced its PRS 26 transaction, issuing a planned $700 million of bonds backed by Australian mortgages.

Pepper Money has announced that its PRS 26 transaction was successfully priced on 10 June, with its $700-million residential mortgage-backed security (RMBS) comprising a mix of prime and non-conforming mortgages.

According to Pepper, the program is designed to optimise the funding of its asset originations.

Commenting on the strong appetite and support from investors, Pepper treasurer Andrew Twyford said: “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.”

“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.”

Advertisement
Advertisement

Pepper Group’s Australia CEO, Mario Rehayem, thanked the Australian Office of Financial Management for its willingness to participate in the transaction, despite no investment being required.

He also showed his appreciation for Pepper’s treasury team for their work in the transaction.

“The success of this transaction is due mainly to the tireless work of Pepper’s treasury team who deserve recognition for their efforts,” Mr Rehayem said.

“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.”

Pepper also thanked the Commonwealth Bank of Australia (CBA) who was the arranger of the transaction, and NAB, Westpac, Macquarie Bank and Standard Chartered Bank for their work as joint lead managers in distributing the various note classes.

PROMOTED CONTENT


The transaction is scheduled to settle on 18 June.

Pepper Money previously issued a $750-million PRS in November last year, its second PRS for 2019.

[Related: Resimac closes $500m RMBS transaction]

Pepper Group prices $700m RMBS
Pepper Group
mortgagebusiness

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

Latest News

Third parties should be given “action initiation”, the final report into the Inquiry into Future Directions for the Consumer Data Right ...

Properties in the Tasmanian capital continue to have the highest rate of profitability, according to new research. ...

The global bank has merged the wealth management teams in global consumer banking and institutional clients divisions to form a single wealt...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.