Deal marks the lender's fifth public securitisation this year
Pepper Money has recently priced a $724.64 million car and equipment asset-backed security (ABS) transaction, named SPARKZ 7, which is set to settle on August 23.
This marks Pepper Money's fifth public securitisation transaction this year, with a total of $3.8 billion raised in the securitisation markets since the beginning of the calendar year.
The ABS program, known as SPARKZ, was initiated by Pepper Money in 2019 and has been instrumental in supporting the continuous growth of its asset finance business. The company’s assets under management currently surpass $5 billion.
The portfolio consists of various asset types, including car receivables, marine and recreational equipment, which are distributed through multiple channels such as mortgage brokers, online auto brokers, commercial and consumer brokers, car dealerships, and original equipment manufacturers.
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“We started the asset finance business in late 2014 and since then it has grown to become a leading non-bank asset finance lender in Australia,” said Pepper Money CEO Mario Rehayem (pictured above left).
“Pepper Money undertook its first SPARKZ transaction in 2019 – we are now onto our seventh and have raised in excess of $4.7 billion from this program alone, a testament to the ongoing investor support for Pepper Money and our asset finance business. SPARKZ 7 will support the ongoing originations growth of our asset finance business.
“We experienced favourable market conditions for this transaction and investor interest was strong,” said Anthony Moir (pictured above right), treasurer at Pepper Money.
“It was encouraging to see a good mix of both domestic and offshore investors participate in the transaction and we thank both our long-term investors and new investors to the SPARKZ program for their participation.”
SPARKZ 7 represents Pepper Money's second ABS deal of 2023 and its fifth securitisation for the year.
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