Specialist lender issues $600m transaction

The group said it showed an improving tone in market conditions

Specialist lender issues $600m transaction


By Rebecca Pike

A specialist lender has said its latest securitisation transaction shows an improving tone in market conditions.

Pepper Group’s I-Prime 2018-2 transaction was priced on Friday, issuing $600m, with all tranches well covered.

It was the first I-Prime transaction to offer investors the opportunity to invest in both US and Australian Dollar notes.

Pepper’s I-Prime program which is more heavily weighted towards investment loans is designed to optimise the funding of its asset originations and in turn offer a differentiated product to credit investors.

In this transaction, prime investment loans comprised 58% of the underlying collateral and 42% was prime owner occupied loans.

Commenting on the strong support from investors Paul Byrne, Pepper’s group treasurer, said, “The transaction was well supported by our deep and diversified onshore and offshore investor base who invested in both Australian and US dollar notes. This being the first I-Prime transaction to offer investors the opportunity to invest in US dollar notes.

“The execution of this transaction is an improvement on our last transaction. It demonstrates not only the improving tone in market conditions, but additionally Pepper’s commitment to providing attractive investment opportunities to our investor base whilst also delivering against our overall funding strategy.”

Pepper’s Australian CEO, Mario Rehayem said, “Pepper continually focuses on using its capabilities to provide balanced solutions that deliver value to our customers and our business. This transaction demonstrates our ability to meet not only the underserved needs of our customers, but also the needs of our debt investors in an innovative, yet responsible manner.”

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