The non-bank lender has celebrated a year of record issuance after pricing its third asset finance ABS transaction, SPARKZ3, delivering $615.9 million to the group.
Pepper’s asset finance portfolio comprises auto receivables alongside other asset types and is distributed via commercial and consumer brokers, car dealers and mortgage brokers.
The transaction will settle today (17 December 2020).
The latest transaction follows a slew of non-conforming securitisations and RMBS deals since June 2020, taking Pepper’s total issuance for the year to approximately $4.2 billion.
Pepper Group CEO, Australia and New Zealand, Mario Rehayem said: “I am delighted that our second ABS transaction in 2020 has also led to us experiencing a record year of issuance in the public debt capital markets. It signifies the strong growth we have experienced in our asset finance business in 2020, growing investor appetite for this relatively new Pepper platform.”
He added that the issuance means the lender is “exceptionally well funded” and able to help “even more” customers in 2021.
As opposed to previous transactions where National Australia Bank (NAB) acted as the arranger, Westpac Institutional Bank acted as Pepper’s arranger and joint lead manager, while NAB, BofA Securities, Societe Generale, RBC Capital Markets and MUFG Securities were joint lead managers.