Pepper Money Ltd, the UK specialist residential mortgage lender, has successfully completed its first residential mortgage backed securitisation.
Pepper Money is a wholly owned subsidiary of the Pepper Group, the global financial services business, which has issued over 30 residential mortgage backed securitisation transactions.
The UK transaction, which generated £260m in funding via the sale of UK residential mortgage backed bonds issued under the Polaris 2019-1 brand, was very well received by the UK and International investor base. The transaction achieved exceptional levels of demand with high levels of over-subscription at every ratings level, achieving competitive final pricing levels notwithstanding the strong supply dynamics evident in the market.
Polaris 2019-1 was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.
Laurence Morey, pictured, CEO of Pepper Money, says:
“There was strong investor demand for this securitisation, which was over-subscribed in a competitive and uncertain market. This is testament to the quality assets we are able to generate at Pepper Money and the strength of Pepper’s global franchise. While Polaris 2019-1 happens to be our first UK transaction it builds on Pepper’s exceptional multi cycle track record as a committed capital markets issuer. Polaris 2019-1 is another important step in our growth plans to develop a market leading specialist lending business built on a diverse and sustainable funding strategy.”