It is the firm's second public securitisation this year
Pepper Money has announced the pricing of a $675.9 million asset-backed security (ABS) transaction, SPARKZ 8, set to settle on April 18.
This marks the company’s second public securitisation effort this year, bringing its total raised in 2024 through securitisation markets to $1.4 billion.
Launched in 2019, the SPARKZ program is central to the expansion of Pepper Money’s Asset Finance division. With assets under management now surpassing $6 billion, the firm is recognised as a top non-bank asset financier in Australia.
The SPARKZ portfolio includes car receivables and a variety of other assets, such as marine and recreational equipment – acquired through multiple channels, including mortgage brokers, online auto brokers, commercial and consumer brokers, car dealerships, salary packagers, and original equipment manufacturers.
Read more: Pepper Money prices first RMBS for 2024
“We started our Asset Finance business in late 2014 and have since grown it to become a leading non-bank asset finance lender in Australia,” said Mario Rehayem (pictured left), chief executive at Pepper Money.
“Pepper Money undertook its first SPARKZ transaction in 2019 – we are now onto our eighth and have raised more than $5.4 billion from this program alone – a testament to the ongoing investor support for Pepper Money and our Asset Finance business. SPARKZ 8 will support the ongoing originations growth of our Asset Finance business.”
Anthony Moir (pictured right), the company’s treasurer, noted the robust investor interest and favourable market conditions surrounding the transaction.
“It was encouraging to see a good mix of both domestic and offshore investors participate in the transaction,” Moir said. “We thank both our long-term investors and new investors to the SPARKZ program for their participation.”
Pepper Money also acknowledged the contributions of National Australia Bank Limited, BofA Securities, Royal Bank of Canada, Societe Generale, and Westpac Banking Corporation for their roles in managing the transaction.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
