The funds will support the growth of the lender’s non-conforming mortgage business
Non-bank lender Pepper Money has priced a $1.25 billion residential mortgage-backed securities (RMBS) transaction, PRS40, which is set to settle on Aug. 16.
The transaction is part of Pepper Money’s broader securitisation program, which includes a mix of prime and non-conforming mortgages. Funds raised from PRS40 will primarily support the growth of the company’s non-conforming mortgage business in Australia.
“PRS40 is our third public securitisation in 2024 and our largest all-Australian-dollar deal on record,” said Mario Rehayem (pictured above left), chief executive at Pepper Money. “Our ability to upsize the deal and raise $1.25 billion, with tranches heavily oversubscribed, is testament to the strong investor support for Pepper Money’s securitisation programs.”
Pepper Money’s first public securitisation this year – a $750 million RMBS transaction dubbed PRS39 – was settled in February, while the second one – a $675.9 million asset-backed security transaction called SPARKZ 8 – was settled in April.
Rehayem highlighted the lender’s 24-year track record in debt capital markets and the company’s success in navigating various economic cycles. He also underscored the milestone of completing 40 non-conforming public RMBS deals since the company’s first issuance in 2003, raising over $27.3 billion through its PRS program.
“As one of Australia’s leading non-bank lenders, we have developed a deep understanding of customer niches, typically those underserved by banks,” Rehayem said.
He attributed the company’s growth from a specialist lender in 2000 to a leading non-bank lender in mortgages and asset finance to its focus on innovation, agility, and leveraging core competencies in credit, funding, distribution, and technology.
Anthony Moir (pictured above right), treasurer at Pepper Money, added that since 2003, the company has completed 64 prime and non-conforming RMBS and ABS transactions, raising more than $41.3 billion in total.
“The strong ongoing support from debt capital market investors for our issuances demonstrates the strength and longevity of Pepper Money’s relationships and our ability to continue to fund Pepper Money’s ongoing growth,” Moir said.
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