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Non-bank prices $750m RMBS

Pepper Group has priced a $750-million RMBS, marking its first securitisation for 2021.

The non-bank lender has announced that it has priced a $750-million I-Prime 2021-1 transaction, amid what it said is a backdrop of “strong” investor demand for Australian residential mortgage-backed securities (RMBS).

The deal represents Pepper’s first securitisation for 2021, with the lender expecting to deliver a number of securitisation transactions to market.

The Commonwealth Bank of Australia (CBA) acted as the arranger for the deal, while joint lead managers included National Australia Bank (NAB), Westpac, and Sumitomo Mitsui Banking Corp.

Commenting on the transaction, Pepper Group’s Australian CEO, Mario Rehayem, said this was also the first transaction for Pepper’s Australian treasurer, Anthony Moir, who joined the lender in February.

“Congratulations to Anthony on bringing this transaction to market in a matter of weeks since joining Pepper,” Mr Rehayem said.

“The pleasing outcome for this transaction highlights the strong support Pepper can command in the securitisation market, given the quality and performance of our underlying collateral.”

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Mr Rehayem also acknowledged the assistance of Pepper’s former treasurer, Andrew Tryford, who he said has continued to provide services to the lender through the advisory firm Vixory Capital.

Mr Moir also spoke about the RMBS transaction, stating that: “For my first issuance as treasurer, I am very pleased with the level of investor engagement, investor appetite and overall execution outcome achieved.

“We attracted new investors and welcomed back key partners from previous transactions, including domestic, offshore and even European investors.”

Pepper Group announced in January this year that it would enter the Japanese financial services market after acquiring 100 per cent of Millennium Holdings KK, the holding company of Millennium Corp.

The lender priced an asset finance transaction worth over $615 million in December last year, along with a non-conforming securitisation worth $750 million in November, and a $1.1-billion I-Prime securitisation in October.

[Related: RLOs should be ‘tweaked, not removed’: Pepper CEO]

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