The tranches will support its residential and buy-to-let (BTL) mortgage-backed securitisation under its Polaris brand. Bank of America is acting as sole arranger, with Barclays, Lloyds, MUFG and Societe Generale appointed as joint lead managers.
This will potentially be Pepper Money’s first USD-dominated note tranche and diversify its funding, while broadening its institutional investor base and ability to fund responsible lending at scale.
This comes following sustained growth across Pepper Money, which now supports over 100,000 customers, manages £4.5bn in assets and originates more than £10.6bn in mortgages since launching to the UK market in 2015.
Andy Voss, CFO at Pepper Money, said: “This marks another important milestone for Pepper Money and reflects the continued strength and maturity of our capital markets programme. As part of the transaction, we are exploring the potential for our first USD-denominated note issuance, which would broaden our institutional investor base and further diversify our funding platform.
“Investor confidence in our securitisation programme is underpinned by disciplined underwriting, resilient portfolio performance and the scale we have built across the business. This transaction would support our ability to lend responsibly at scale, helping more customers whose circumstances may not fit traditional lending models while advancing our ambition to be a regular and reliable issuer in the capital market.”
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