Pepper breaks new ground with triple-currency, green-tranched RMBS

Pepper Group (Pepper)’s latest residential mortgage-backed securities (RMBS) transaction featured two tranches backed by green mortgages, one denominated in euros, and also added a US dollar note. The issuer has a firm commitment to issuing further euro-denominated green tranches, which it hopes will unlock European demand as its funding requirement continues to rise.

Pepper prices A$1.25 billion multi-currency RMBS deal with green tranches

Pepper launches multi-currency RMBS deal with green tranches

On 27 November, Pepper Group (Pepper) launched its indicative A$750 million (US$541.6 million) equivalent residential mortgage-backed securities (RMBS) transaction, PRS 22. The forthcoming deal includes notes denominated in Australian dollars, euros and US dollars. The Class A1-G€ and Class A1-Ga notes will be exclusively backed by green mortgages.

Pepper starts marketing PRS 22 RMBS deal with possible green tranche

On 21 November, Pepper Group (Pepper) began taking indications of interest for the Class A1-a, Class A2 and Class B notes of its residential mortgage-backed securities (RMBS) transaction, PRS 22. The structure may also include an Australian dollar denominated A1-Ga tranche backed by green mortgages, subject to sufficient demand.

Pepper considers multi-currency RMBS deal including green tranches

Late in the Sydney day on 29 October, Pepper Group (Pepper) revealed plans to hold investor meetings in Australia and Europe regarding a potential nonconforming residential mortgage-backed securities (RMBS) transaction. The possible deal will be denominated in Australian dollars, US dollars and euros in 144A and Reg S formats. The euro tranche and potentially an Australian dollar tranche will be backed by green mortgages.