Non-bank lender Pepper has priced its inaugural term transaction of asset finance receivables under a newly created SPARKZ platform, securing $511.6 million in funding.
Pepper Group’s Australian CEO, Mario Rehayem, said the transaction is a “significant milestone” for Pepper Group and its asset finance business.
“This securitisation provides us with funding that can sustain the scalable asset finance business model we have built and allows us to continue to offer competitive pricing in market,” he said. “Pepper’s longstanding track record in the RMBS market and its expertise in underwriting and originating multiple asset classes has once again been showcased to the market with the execution of SPARKZ 1.”
The non-bank’s asset finance portfolio comprises a wide range of asset types, including motor vehicles and equipment, distributed via commercial and consumer brokers, car dealers and mortgage brokers.
Commenting on Pepper’s offering, chief commercial officer Bernie Campbell said: “In under five years, Pepper has built an asset finance portfolio of over $2 billion, from a standing start in early 2015.
“It’s our ability to identify market niches underserved by the banks that has allowed us to achieve such impressive growth.”
Pepper held bilateral discussions across a core group of investors to secure the transaction. After receiving a positive reception from stakeholders, Pepper launched a fully placed book, ahead of pricing.
Pepper’s treasurer, Andrew Twyford, said: “We are delighted with this strong debut execution from our SPARKZ ABS platform and look forward to offering a second transaction to the broader market later in the year.”