Pepper Australia has raised A$350 million of funding through an issue of non-conforming residential mortgage-backed securities that were priced at the same margin as its previous non-conforming issue in April this year.Around 40 per cent of the assets backing Pepper Residential Securities Trust No.11 are low-doc loans and another 40 per cent are credit-impaired loans.Pepper will pay 120 basis points over the one-month bank bill swap rate on the $227.5 million A1 tranche of the issue, which has a weighted average life of 2.4 years.Pricing on the $48.6 million A2 tranche, which was a weighted average life of 2.4 years, was 165 bps over the swap rate.Pricing on the $19.9 million B tranche, which has a weighted average life of 4.4 years, was 240 bps over swap.Pricing on the other five tranches was not disclosed.Pepper's group treasurer, Todd Lawler, said in a statement that there were 11 domestic and two offshore investors in the issue.