Powered by MOMENTUM MEDIA
subscribe to our newsletter
Pepper completes non-conforming RMBS issue

Pepper completes non-conforming RMBS issue

Pepper Australia has completed what it has described as the “largest non-conforming RMBS issue since the emergence of the financial crisis in 2007”.

In a statement issued yesterday, the non-bank lender announced the transaction was complete, which saw particular traction with offshore interests, making up 71.2 per cent of the total amount offered.

While this is Pepper’s 16th RMBS issue since 2003, co-group CEO Patrick Tuttle said this particular issue was “satisfying” given its size and reception.

Advertisement
Advertisement

“It is very satisfying to complete the largest non-conforming RMBS issue since emergence of the financial crisis in 2007,” Mr Tuttle said. “[It’s] a testament to the longevity of our programme and the loyal investor support we have both domestically and offshore.”

Arranged by NAB, the transaction was priced at $550 million, with NAB, CBA and Westpac joint lead managers for the Australian tranches and NAB Securities and Citibank lead joint managers for the US tranche.

“NAB is delighted to have arranged this transaction for Pepper, and to achieve an upsized transaction with five per cent risk retention was a particularly good result,” said the bank’s director, securitisation organisations, Sarah Samson.

“Overall it was a well-diversified book of investors, which is testament to Pepper’s commitment to exploring new markets and continuing issuance of transactions including foreign currency tranches.”

Pepper will retain a minimum of five per cent of each tranche in the structure, which the lender says is a “first for an Australian non-bank RMBS issuer”.

Pepper completes non-conforming RMBS issue
mortgagebusiness

 

Latest News

A multinational non-bank lender has commenced operation in Australia in a bid to disrupt the domestic market as it seeks to service unmet de...

Expected monetary policy adjustments in overseas markets could make it easier for banks to pass on cuts to the cash rate from the RBA, accor...

Michael Andrew, a renowned tax and business leader, has passed away. ...

FROM THE WEB
podcast

LATEST PODCAST: Broker share and Westpac U-turn

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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