This marks the lender's fourth RMBS transaction of the year
Pepper Money Limited has successfully priced a residential mortgage-backed security (RMBS) transaction, known as PRS38, which is set to settle on September 7.
The $850 million funding raised through this transaction will be used to support the growth of Pepper Money's non-conforming mortgage business in Australia. This marks the fourth RMBS transaction for Pepper Money in 2023.
Pepper Money's PRS program consists of a combination of prime and non-conforming mortgages. The strong demand for PRS38 enabled the company to upsize the offering from the initial $750 million to $850 million, the company said.
“Pepper Money's mission to ‘help people succeed’ is clearly demonstrated through our strength in the non-conforming mortgage segment,” said Mario Rehayem (pictured above left), CEO of Pepper Money. “Since the beginning of 2023 we have, including PRS38, completed four PRS securitisations raising A$3.2 billion. “
Rehayem also highlighted the completion of four PRS securitisations in 2023, including PRS38, which have raised a total of $3.2 billion.
Pepper Money has achieved significant growth over the past 23 years. The company's core competencies in credit, funding, distribution, and technology have allowed it to innovate, remain agile, and maintain a disciplined approach to business. With $19 billion in assets under management today, Pepper Money is well-positioned to capitalise on emerging opportunities, the company said.
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“Since 2003, Pepper Money has successfully completed 60 securitisation transactions (Including PRS38) raising more than A$37.8 billion,” said Anthony Moir (pictured above right), treasurer at Pepper Money.
“The strong ongoing support from debt capital market investors for both Pepper Money’s prime and non-conforming issuances demonstrates the strength and longevity of our relationships and our ability to continue to fund Pepper Money’s ongoing growth.”
Pepper Money also recently priced a $724.64 million car and equipment asset-backed security transaction. The company reported total originations of $3.5 billion over the first half of the year.
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