Pepper Money upsizes I-Prime securitisation to $850 million

by Micah Guiao16 Sep 2021

Pepper Money’s I-Prime 2021-2 securitisation was priced today, with the transaction upsized from $700 million to $850 million.

The A1 notes are at their tightest level since before the global financial crisis and priced 10bps points better than its first I-Prime deal last March.

“We are delighted to see the continued strong support from new and our long-term investors in debt capital markets for our prime and non-confirming issuances,” said Mario Rehayem, chief executive officer of Pepper Money. “This deal positions us well to leverage the opportunities for ongoing growth available to us, in particular in the underserved segments of the mortgage market where we have a strong track record and compelling customer value propositions.”

NAB, CBA, Westpac, and HSBC served as the joint lead managers of the transaction, while Bank of China, Singapore Branch, and SMBC Nikko Capital Markets as the co-managers.

This marks Pepper Money’s fourth public securitisation this year, ultimately raising its public market funding to $3.2 billion.

Since 2003, the non-bank lender has raised in excess of $26.5 billion across 45 residential mortgage-backed securities and asset-backed security transactions.

“The strong market response to this deal is again testament to Pepper’s well-established investor relationships and exemplary track record of calling every term deal at the first opportunity and providing an attractive investment proposition for investors,” said Anthony Moir, treasurer at Pepper Money.

I-Prime 2021-2 is expected to settle on Sept. 22.