Pepper Group prices PRS28 - its fourth RMBS since June

Posted: 09-11-2020

Pepper Group’s PRS 28 transaction was successfully priced on Tuesday 10 November, issuing a planned $750 million worth of bonds backed by Australian mortgages.

This is Pepper’s third non-conforming securitisation and fourth RMBS deal since June 2020.

Pepper Group’s Australian CEO, Mario Rehayem said “I’d like to recognise the ongoing efforts of the Pepper team who have accomplished four RMBS transactions, totalling $3.55 billion, in under 6 months. This result underscores Pepper’s strong reputation and capacity in the capital markets which enables us to further support every day Australians looking for a real alternative to achieve their lending goals.

“Whilst this is another transaction where no support was required from the Australian Office of Financial Management (AOFM), Pepper Group once again wishes to express its appreciation for their willingness to participate in the transaction, and their broader support of the Australian securitisation markets.” Mario Rehayem 

Speaking about the outcome, Andrew Twyford, Pepper’s Treasurer, said “The performance of the RMBS markets in 2020 has seen us materially improve execution across each of the 3 non-conforming transactions from our PRS platform completed in 2020.  The continued strong demand saw all tranches well sought after and Pepper is excited to once again welcome the new investors to our program whilst appreciating the ongoing support of our existing domestic and global investor base.”

Pepper wishes to thank National Australia Bank (Arranger), Commonwealth Bank of Australia, Westpac Banking Corporation and Macquarie Bank for their work as Joint Lead Managers.

Pepper’s PRS program comprises a mix of non-conforming and prime mortgages and is designed to optimise the funding of its asset originations.

The transaction is scheduled to settle on 19 November 2020.