$850m RMBS priced by non-bank

Pepper Money Limited (Pepper) has unveiled that its latest I-Prime 2021-2 transaction has been upsized from the initial amount of $700 million to $850 million, following strong demand. 

It highlighted that the A1 notes of this most recent I-Prime deal were priced at the tightest level since the global financial crisis, and were 10 basis points better than the March transaction. 

The non-bank stated that all tranches in this deal were well covered.

The RMBS is set to settle on 22 September. 

The deal marks Pepper’s second I-Prime deal (and its fourth public securitisation) for the year. 

In March, the ASX-listed lender confirmed its first transaction at $750 million.

Pepper Money chief executive Mario Rehayem said that the lender was “delighted to see the continued strong support from new and our long-term investors in debt capital markets for our Prime and Non-Confirming issuances”. 

“This deal positions us well to leverage the opportunities for ongoing growth available to us, in particular in the underserved segments of the mortgage market where we have a strong track record and compelling customer value propositions,” Mr Rehayem continued. 

According to Pepper, this fourth public issuance of the year brings the total figure of funding raised from public markets in 2021 to $3.2 billion. 

Last month, Pepper priced its third public securitisation for 2021 at $850 million. 

[Related: Pepper prices $850m RMBS]