The $723 million securitisation will support the growth of the company’s asset finance business
Pepper Money has announced that it has priced a $723.3 million asset-backed security (ABS) transaction.
The transaction, known as SPARKZ6, will settle on May 18.
SPARKZ6 is Pepper Money’s third public securitisation in 2023, with the company having raised $2.4 billion in the securitisation markets so far this year. The deal is Pepper Money’s first ABS securitisation for 2023.
Funds raised through the transaction will support the continued growth of Pepper Money’s asset finance business, the company said.
Since launching in 2015, Pepper Money’s asset finance business has grown to more than $5 billion in assets under management, making it one of the top non-bank asset financers in Australia. The company’s asset finance portfolio includes car receivables and other asset types including marine and recreational equipment, distributed by mortgage brokers, online auto brokers, commercial and consumer brokers, car dealerships and manufacturers.
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“Our SPARKZ6 deal demonstrates strong, ongoing investor support for our asset finance business and Pepper Money as a whole,” said Mario Rehayem (pictured above), CEO of Pepper Money.
“Our growth to date is testament to our unique ability to leverage our innovative, purpose-built technology and specialist capabilities to provide the market with the right financing solution for their needs, combined with market-leading approval times.
"We continue to build our offering, and in February 2023 we moved to ‘real-time’ payments for asset finance. This is part of our ongoing support to our partners in delivering the best service and solution to their customers.”
Rehayem said Pepper Money’s ability to upsize the SPARKZ6 transaction from $620 million to $723 million was “very encouraging,” indicating both an improvement in the market and the strength of the company’s finding programme.
“SPARKZ6 gives us the funding headroom for further growth building upon our strong record of year-on-year growth, and enables us to continue to deliver our mission of helping people succeed,” he said. “SPARKZ6 represents our sixth ABS since starting in 2019, bringing our cumulative ABS rating to $4.0 billion.”
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