Inaugural debt issuance ‘a testament to the ongoing strong support from investors’
Pepper Money has priced its inaugural Pepper Commercial and Residential Securities No.1 (PCRS1), a $500 million public securitisation comprising both commercial and residential mortgages.
This marks the ASX-listed non-bank lender’s first entry into the small-ticket commercial mortgage-backed securities (CMBS) space and reflects continued investor appetite for diversified credit investments.
The transaction is set to settle on 20 November 2025.
Pepper Money chief executive Mario Rehayem (pictured) said: “It is a testament to the ongoing strong support from investors for Pepper Money's securitisation programs that as our first PCRS issuance it attracted very strong support across all tranches”.
“We have a long standing (25+ years) track record in debt capital markets. I am proud to celebrate an issuance into yet another asset class – since our first non-conforming RMBS issuance in 2003.
“Innovation has been at the core of Pepper Money since inception – this has seen the business develop and grow to offer a broad product range within our mortgage and asset finance businesses that cater for a range of customer needs”.
Pepper Money's treasurer Anthony Moir noted that Since 2003, Pepper Money has successfully raised $44 billion through 67 prime residential mortgage, non-conforming residential mortgage and small-ticket commercial real estate securitisations (including PCRS1) and ABS transactions.
The strong ongoing support from debt capital market investors for our issuances demonstrates the strength and longevity of Pepper Money’s relationships and our ability to continue to fund Pepper Money’s ongoing growth,” said Moir.
Coupons for investors are:
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Class A1: One month bank bill swap rate (1M BBSW) + 1.10%
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Class A2: 1M BBSW + 1.15%
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Class B: 1M BBSW + 1.40%
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Class C: 1M BBSW + 1.55%
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Class D: 1M BBSW + 1.65%
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Class E: 1M BBSW + 2.80%
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Class F: 1M BBSW + 3.90%
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Class G: Not Disclosed
