Pepper Money prices first RMBS for 2024

The transaction will settle on month's end

Pepper Money prices first RMBS for 2024

Non-bank lender Pepper Money has announced the pricing of a $750 million residential mortgage-backed security (RMBS) transaction, dubbed PRS39, set to settle at the end of the month.

The PRS39 issuance forms part of Pepper Money’s PRS program, which includes both prime and non-conforming mortgages. This move aims to bolster the growth of the company’s non-conforming mortgage business in Australia.

“Our ability to raise $750 million under PRS39, with most tranches heavily oversubscribed, is testament to the strong investor support for Pepper Money’s securitisation programs,” said Mario Rehayem (pictured left), chief executive at Pepper Money.

“We have a longstanding track record in debt capital markets and of successfully managing through all economic cycles. With $20 billion in assets under management today, we remain financially strong and well positioned to capitalise on opportunities as they emerge.”

Rehayem said that Pepper Money has carved a niche in serving customers often overlooked by traditional banks, particularly within the non-conforming mortgage sector, and credits the company’s success to its approach and expertise in credit, funding, distribution, and technology.

“Since 2003, Pepper Money has successfully completed 62 securitisation transactions, including PRS39, raising more than $39 billion,” said Anthony Moir (pictured right), treasurer at Pepper Money. “The strong ongoing support from debt capital market investors for both Pepper Money’s prime and non-conforming issuances demonstrates the strength and longevity of our relationships and our ability to continue to fund Pepper Money’s ongoing growth.”

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