Pepper Group prices RMBS issue at $750m

Pepper Group’s latest near-prime and non-conforming residential mortgage-backed securities (RMBS), PRS 24, has been priced at $750 million.

It is the second near-prime and non-conforming RMBS transaction of 2019, and the third in total.

Mario Rehayem, Pepper Group’s Australian CEO, said these transactions represent how the non-bank lender is “helping customers who have been overlooked by the banks obtain the loan they need to succeed”.

“And in the current environment, it makes us particularly proud to showcase our ability to execute deals with such frequency and diversity of investors,” Mr Rehayem continued.

A portion of the transaction, or the equivalent of $162 million, was in green Euro bond format.

Paul Byrne, Pepper Group’s treasurer, said: “This tranche continues to attract growing investor attention with the book being two times covered at the top.

“This was the third transaction where we had the opportunity to demonstrate our green credentials and to demonstrate industry leadership in relation to energy-efficient housing and the need to reduce the carbon footprint of our housing stock.”

Mr Byrne continued: “We remain committed to continuing to meet investor demand for green bonds and will bring a further two green bond tranches to the market over the course of 2019.”

The latest transaction takes Pepper’s primary issuance in 2019 to date to $2.25 billion.

[Related: La Trobe prices eighth $750m RMBS]

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