The mortgage lender is a wholly owned subsidiary of financial services business Pepper Group, which has issued more than 30 residential mortgage backed securitisation transactions.
The UK transaction generated £260m in funding via the sale of UK residential mortgage backed bonds issued under the Polaris 2019-1 brand.
Polaris 2019-1 was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.
The securitisation is expected to provide the company access to additional liquidity to support new lending as it sets out to review how to develop its products to meet the needs of brokers and their clients.
Laurence Morey, CEO of Pepper Money, said: “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. This securitisation is another step in the growth plans of Pepper Money and supports our objectives to increase lending, backed by a diverse and sustainable funding strategy.”