Pepper Money Prices Its Largest Public All Australian Dollar Securitisation (PRS40) Upsizing to A$1.25 Billion

Pepper Money’s PRS program comprises a mix of Prime and Non-conforming mortgages. The funds raised under PRS40 will continue to support Pepper Money’s Non-conforming mortgage business growth in Australia.

Pepper Money’s CEO Mario Rehayem, said:

PRS40 is our third public securitisation in 2024 and our largest all Australian Dollar (AUD) deal on record. Our ability to upsize the deal and raise A$1.25 billion, with tranches heavily oversubscribed, is testament to the strong investor support for Pepper Money's securitisation programs.

“We have a longstanding (24 year) track record in debt capital markets and have successfully managed through all economic cycles. I am proud to celebrate reaching the milestone of successfully completing 40 Non-conforming public RMBS deals since our first in 2003 raising in excess of A$27.3 billion from our PRS program alone.

“As one of Australia’s leading non-bank lenders, we have, over the past two decades, developed deep understanding of customer niches - typically those underserved by banks. This has enabled us to deliver on our mission to “help people succeed”, in particular in the Non-conforming mortgage segment where we have demonstrated strength. 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.”

Pepper Money's Treasurer, Anthony Moir commented: "Since 2003, Pepper Money has successfully completed, in total, 64 Prime and Non-conforming RMBS and ABS transactions, raising more than A$41.3 billion. 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."

Pepper Money thanks National Australia Bank Limited (Arranger and Joint Lead Manager), Citigroup Global Markets Australia Pty Limited, Commonwealth Bank of Australia, Royal Bank of Canada, Sydney Branch, Société Générale, Standard Chartered Bank, The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch and Westpac Banking Corporation for their work as Joint Lead Managers.

The transaction will settle on 16 August 2024. The pricing details of the notes are as follows: