Pepper Money prices its sixth public securitisation in 2023 PRS38, upsizing to A$850 million

Posted: 30-08-2023
Pepper Money Limited (ASX:PPM) today priced a A$850 million residential mortgage-backed security transaction, PRS38 that will settle on 7 September 2023.

Pepper Money's PRS program comprises a mix of Prime and Non-Conforming mortgages. The funds raised under PRS38 will continue to support Pepper Money's Non-Conforming mortgage business growth in Australia. To date, this is Pepper Money's fourth PRS for 2023.

Pepper Money's CEO Mario Rehayem, said: “Pepper Money's mission to “help people succeed” is clearly demonstrated through our strength in the Non-Conforming mortgage segment. Since the beginning of 2023 we have, including PRS38, completed four PRS securitisations raising A$3.2 billion. "


The demand for PRS38 was very strong allowing us to upsize from A$750 million to $850 million. Our ability to raise a further $850 million under PRS38 this calendar year, demonstrates the strong investor support for Pepper Money's securitization programs.


“As one of Australia’s leading non-bank lenders, we have, over the past 23 years, developed deep understanding of customer niches - typically those underserved by banks. Our ability to be innovative, agile and disciplined and to leverage our core competencies of credit, funding, distribution, and technology – has seen the business grow from a specialist lender in 2000 to a leading non-bank lender in Mortgages and Asset Finance today.

“We have a strong 23 year track record of successfully managing through all cycles. We know when to drive volume, when to flex to the margin, how to manage and allocate capital and how to price for risk. With A$19 billion in Assets under Management (AUM) today we remain strong and have the ability to capitalise on opportunities as they emerge."

Pepper Money's Treasurer, Anthony Moir commented: "Since 2003, Pepper Money has successfully completed 60 securitisation transactions (Including PRS38) raising more than A$37.8 billion. 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 thanks Commonwealth Bank of Australia (Arranger and Joint Lead Manager), National Australia Bank Limited, Standard Chartered Bank and Westpac Banking Corporation for their work as Joint Lead Managers.

This is Pepper Money's fourth Non-Conforming PRS deal for 2023. The transaction will settle on 7 September 2023. The pricing details of the notes are as follows: 

Note ClassA1A2BCDEFG
Coupon 1M BBSW+1.50%1.85%2.70%3.25%4.25%6.70%7.90%ND


For more information please contact:

Investor relations contact
Gordon Livingstone
Reunion Capital Partners
0417 695 138

Media contacts
Helen Karlis
Domestique Consulting
0419 593 348


Celia Moore
Domestique Consulting
0432 344 069

Get in touch with a Lending Specialist

Tell us about your situation. The more we learn, the better we can help.