Specialist lender completes securitisation

by Madison Utley15 Apr 2019

A leading non-bank lender has priced its first securitisation of the year.

Pepper Group’s I-Prime 2019-1 issued A$750m including a US$266m (A$375m tranche), with all tranches well covered.

Prime investment loans comprised 58% of the underlying collateral and prime owner-occupied loans accounted for the remaining 42%.

Paul Byrne, Pepper treasurer, said, “This transaction was particularly well supported by our deep, diversified and growing global investor base, who invested in both the Australian and US dollar notes.

“This brings our year to date primary issuance to A$1.5bn.”

Pepper’s I-Prime program is weighted towards investment loans and is designed to optimise the funding of these assets and offer a differentiated product to its global investor base, “without materially changing Pepper’s existing origination mix.”

This was the second I-Prime transaction to offer investors the opportunity to invest in US dollar notes.

Pepper Group’s Australian CEO, Mario Rehayem, added, “Our ability to source funding from such a diversified group of domestic and offshore investors is testament to the quality of our lending portfolio and consistency of our credit policy. It is a key reason why we continue to grow our market share as the leader in the non-bank sector.”