Pepper Money has priced its second public securitisation of 2025, upsizing the deal to $1.25 billion.
The residential mortgage-backed security (RMBS) transaction, known as PRS41, is set to settle on Sept. 25.
The PRS program includes a mix of prime and non-conforming mortgages, with funds raised under PRS41 to be used in supporting the lender’s mortgage business growth across Australia.
The deal comes as Pepper Money continues to expand rapidly, with assets under management surpassing $20 billion and more than half a million customers. The non-bank reported a 38% year-on-year rise in total originations in the first half of 2025, reaching $4.5 billion, with new mortgages jumping 53% to $2.8 billion.
Pepper Money CEO Mario Rehayem (pictured) highlighted the depth of investor interest in the transaction.
“PRS41 is our second public securitisation this year,” Rehayem said. “Our ability to upsize it and raise $1.25 billion, with tranches again significantly oversubscribed, is an ongoing testament to the strong investor support for Pepper Money's securitisation programs.”
He also underlined the group’s long history in debt markets.
“We have [a] long-standing (25+ years) track record in debt capital markets,” Rehayem said. “I am proud to celebrate reaching the milestone of completing 42 non-conforming public RMBS since our first in 2003 raising in excess of $26.9 billion from our PRS program alone and how we continue to demonstrate our ability to successfully manage through all economic cycles.”
Rehayem said Pepper Money’s focus on innovation has allowed the lender to broaden its product offering and support a wider customer base.
“Innovation has been at the core of Pepper Money since inception – this has seen the business develop and grow to offer a broad product range within its mortgage and asset finance businesses that cater for a range of customer needs,” he said.
Looking ahead to the non-bank’s 25th anniversary, Rehayem has set a target of 1 million customers by 2029, backed by new products, services and an expanding team.
Pepper Money Treasurer Anthony Moir pointed to the scale of the group’s securitisation program, which now spans more than two decades.
“Since 2003, Pepper Money has successfully completed, in total, 66 prime and non-conforming securitisation (including PRS41) and ABS transactions, raising more than $43.5 billion,” Moir said.
“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.”
The PRS41 transaction will settle on Sept. 25. Pepper Money confirmed pricing details for the notes across multiple tranches, reflecting strong demand across both prime and non-conforming mortgage portfolios. The pricing details of the notes are as follows:
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