Pepper Money

About Pepper Money

Founded in 2000, Pepper Money is a leading nonbank lender in the Australian and New Zealand mortgage market and the Australian asset-finance market.

Pepper Money’s business model provides a diversified revenue base generated at multiple points across the customer relationship. It includes loan origination, lending, loan servicing and broker administration. The three core segments in which Pepper Money operates are:

•Mortgages: financing residential home loans and small-balance commercial real estate.
•Asset finance: financing a range of asset types for consumer and commercial customers.
•Loan and other servicing: independent loan servicing for mortgages and personal loans, and broker administration servicing.

Pepper Money’s operating model combines risk-based credit underwriting expertise with customer-focused operations, servicing and collections management. Together, these deliver strong performance in the lending and servicing businesses across multiple asset classes from residential and commercial mortgages to consumer and commercial asset financing.

SIZE OF LOAN BOOK* A$16BN
MAKEUP OF LOAN BOOK MORTGAGES: A$11.3BN
ASSET FINANCE: A$3BN
LOAN AND BROKER SERVICING:  A$1.7BN
GEOGRAPHIC DISTRIBUTION OF LOAN BOOK AUSTRALIA AND NEW ZEALAND: 100%
DEBT ISSUANCES** A$24.8BN ACROSS 43 TRANSACTIONS

* At 30 June 2021.
**From 2003 - 30 June 2021.

At 30 June 2021, Pepper Money had A$16 billion of assets under management.

Ownership and capital structure

After completing a corporate restructure to demerge the Australian, New Zealand and Manila operations from the rest of Pepper Global Group, Pepper Money converted to a public company and listed on the ASX on 25 May 2021 (ASX: PPM).

Pepper Group ANZ Holdco Limited, part of Pepper Global Group, retained 60.6% of the share capital of Pepper Money.

Funding strategy

Pepper Money’s debt funding strategy is structured to provide ongoing, efficient funding for the business to support growth and to manage periods of market disruption.

The funding approach is designed to deliver:

• Access to efficient, scalable funding, enabling Pepper Money to support forecast growth in lending volume.
• Access to loan-eligibility criteria across its funding facilities, enabling Pepper Money to meet the needs of a wide range of loan customers and capitalise on market opportunities.
• Capability to originate through economic and market cycles, enabling Pepper Money better to serve the evolving needs of its loan customers and distribution partners through a range of market conditions.
• Stability of funding, supported by diversity across multiple financiers, markets, currencies, funding structures and facilities.

Pepper Money’s approach to securitised debt funding is to be a frequent issuer in benchmark size into a globally diversified investor base, across a number of asset classes. As part of this strategy, Pepper Money issues in a variety of tenors, currencies and repayment formats. The company began issuing in 2003 and has a 100% track record of calling every deal at the first available call date.

Pepper Money operates a proactive engagement model with its global investor base. This includes face-to-face and other forms of one-on-one engagement to provide the current and prospective investor base the opportunity to discuss all relevant topics. These include updates on corporate strategy, an indication of the issuance pipeline for the next 12-18 months and any new asset classes or platforms that will be coming to market. This is augmented with deal-specific roadshows when required. While face-to-face opportunities are likely to be limited in the near term, Pepper Money is committed to meeting investors at all times via VC or teleconference, to answer questions and provide insights into its programmes and the market.

Pepper Money issues Australian RMBS from two public platforms: Pepper I-Prime and Pepper Residential Securities (PRS). It issues ABS off its SPARKZ platform.

FOR FURTHER INFORMATION PLEASE CONTACT:

Anthony Moir
Treasurer
+61 402 077 903
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Steven Fischer
Deputy Australian Treasurer
+61 413 782 557
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www.pepper.com.au