Pepper closes 2021 with $4.8bn raised

Pepper Money (Pepper) has revealed it is moving to complete $800 million auto asset-backed security (ABS) transaction under the Sparkz programme, with the transaction expected to settle tomorrow (16 December). 

The development has marked the non-bank lender’s sixth public transaction for the 2021 calendar year, with the first being confirmed in March. 

It also marks the lender’s fourth ABS transaction since its first in July 2019.  

The latest inclusion will contribute to a combined figure of $4.8 billion in raised funds for the year. 

The lender’s asset finance portfolio is comprised of auto receivables and other asset types including marine and recreational equipment. 

Pepper chief executive Mario Rehayem commented the ABS transaction “signifies the strong growth we have experienced in our asset finance business this year”. 

“Importantly, it gives us the funding headroom for further growth and therefore the ability to help even more customers in 2022,” Mr Rehayem said.

He added that the non-bank lender first identified asset finance as a growth opportunity in 2014 and has, in the time since, “organically grown this business to over $3 billion of assets under management, with $1.6 billion in originations this year for the 10 months to October”. 

Mr Reyhayem also noted that, according to internal figures on loan originations, Pepper is the “leading financier of electric vehicles” in Australia, having funded more than $200 million in electric purchases since May 2019. 

“We continue to see strong demand in the market for asset finance – in particular for cars, primary equipment and light commercial vehicles – and Sparkz4 positions us to continue to drive strong growth,” Mr Reyhayem concluded. 

Pepper treasurer Anthony Moir added the company is looking forward to offering more opportunities to investors in 2022.

“It was pleasing to end the year on a high note. This is our fourth ABS transaction since 2019 and we saw great support from a broad group of our investors,” Mr Moir said.

“As always, we are excited to continue to see new investors participating in our funding platforms.”

[Related: ScotPac breaks into mortgages]