Pepper Money prices its fourth public securitisation for 2023 PRS37 of A$675 million

Pepper Money Limited (ASX:PPM) has priced a A$675 million residential mortgage-backed security (RMBS) transaction, PRS 37 that will settle on 30 May 2023.

Pepper Money’s PRS program is designed to optimise funding of its Australian mortgage originations and comprises a mix of Prime and Non-Conforming mortgages.

The funds raised under PRS37 will support Pepper Money’s Non-Conforming mortgage business growth and is the Company’s third Non-Conforming PRS deal for 2023.

Pepper Money’s CEO Mario Rehayem said, “We continue to see strong support for our securitisation issuance programs from new and existing long-term investors across both of our asset classes”.

“In the first five months of calendar 2023 we have successfully completed four public securitisations – raising more than $2.3 billion in Residential Mortgage Backed Securities and $0.7 billion from our SPARKZ ABS Asset Finance program”.

“We continue to see strong demand for our products reflecting the compelling value proposition they provide customers. Our PRS 37 transaction supports the ongoing opportunities available to us in the underserved non-conforming segments of the mortgage market, where we have built a strong track record over 20 years of sustainable growth across economic cycles”.

Pepper Money’s Deputy Treasurer, Steven Fischer, commented, “Since 2003, Pepper Money has successfully completed 58 securitisation transactions (including PSR37) raising more than $36 billion. PRS 37 again demonstrates Pepper Money’s ability to call every term deal at the first opportunity and to provide an attractive investment proposition for investors”.

Pepper Money thanks National Australia Bank Limited for all their work as Arranger and Lead Manager and King & Wood Mallesons who acted as Pepper Money's legal counsel.

The transaction will settle on 30 May 2023. The pricing details are as follows: