Pepper Money prices its first public securitisation in 2023 PRS35 upsizing to A$1 billion

Designed to optimise the funding of its Australian mortgage originations, Pepper Money’s PRS program comprises a mix of Non-Conforming and Prime mortgages.

Commenting on the transaction, Pepper Money’s CEO Mario Rehayem, said: “Pepper Money is off to a very strong start for CY2023, with our first public securitisation raising A$1.0bn to support our Non-Conforming mortgage growth. This follows Pepper Money raising over $5.0 billion in CY2022. The success of PRS35 reflects the strong, ongoing investor support for Pepper Money. As one of Australia’s leading non-bank lenders, we continue to demonstrate the ability of the business to grow, supported by the scale and depth of our funding capabilities"

Including PSR35, since 2003, Pepper Money has successfully completed 55 securitisation transactions raising more than $34.2 billion across multiple economic cycles demonstrating ongoing investor support and confidence in Pepper Money's 22+ years proven track record of pricing for risk, and the depth of its credit and underwriting capabilities.

Pepper Money’s Treasurer Anthony Moir said: “Our ability to upsize this transaction from $500 million to $1 billion is very encouraging and highlights a significant improvement in credit market conditions and the strength of Pepper Money's funding programme.”

Pepper Money thanks Westpac Banking Corporation, (Arranger and Joint Lead Manager), Citigroup Global Markets Australia Pty Limited, Commonwealth Bank of Australia, Macquarie Bank Ltd, National Australia Bank Limited and Standard Chartered Bank for their work as Joint Lead Managers.

This is Pepper Money’s first Non-Conforming PRS deal for 2023. The transaction will settle on 24 February 2023. The pricing details of the notes are as follows: