Pepper Money prices first social bond

Transaction raises $300m

Pepper Money prices first social bond


By Jayden Fennell

Non-bank lender Pepper Money has priced its first social bond, raising $300m.

It’s the fourth public securitisation transaction completed by Pepper Money in the year to date and brings the total amount it has raised in the securitisation markets this year to $2.5bn.

The social bond raising will provide Pepper Money with funding to finance loans that deliver positive social outcomes.

The raising complements Pepper Money’s Prime 2022-1, which included a $330m green tranche.

Pepper Money CEO Mario Rehayem (pictured above) said since its inception, Pepper Money’s mission had been to help people succeed.

“We challenge the way loans are designed and distributed, focusing on the underserved and undervalued segments – those customers that traditional banks do not cater to,” Rehayem said. “Our social bond raising reinforces the fundamental principles of our business, which are to drive financial inclusion through innovation and to seek to lead the industry in making a positive contribution to society.”

Pepper Money treasurer Anthony Moir said he was delighted about the market demand for social bonds, particularly in light of current market conditions.

“It is a very positive result as we continue to build the strength of our 2022 funding program,” Moir said.

Pepper Money thanked NAB (arranger, sustainability co-ordinator and joint lead manager),  Commonwealth Bank and Westpac for their work as joint lead managers and RBC Capital Markets as co-manager.

The social bond transaction will settle on 9 June.

In May, Pepper Money priced a $700m auto asset-backed security transaction under the SPARKZ program, upsizing from $600m on the strength of investor support.

It was Pepper Money’s third public securitisation transaction for calendar year 2022 – the non-bank has $2.2 bn in the securitisation markets this year. Funds raised under the SPARKZ 5 transaction will support the continued growth of the asset finance business.

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