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Pepper prices RMBS on tighter margin

Pepper Group has completed its latest securitisation transaction, raising A$1.1 billion in its biggest ever RMBS issue and pricing at tighter margins than its previous deals this year.

Pepper’s I-Prime 2020-1 transaction follows a $1 billion RMBS issue in August and $700 million in June.

Pepper is paying 90 basis points over the one-month bank bill swap rate on the A1-s notes. It paid a margin of 95 bps on the A1-s notes in the previous deal.

Pricing on the A1-a notes was 130 bps over BBSW and pricing of the A2 notes was 170 bps over BBSW.

In the August transaction, pricing on the A1-a notes was 165 bps.

Pepper’s treasurer Andrew Twyford said the transaction attracted new investors. The AOFM was prepared to support the deal but was not involved, either directly or indirectly.

 

 

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