Pepper starts marketing PRS 22 RMBS deal with possible green tranche

Wednesday, 21 November 2018

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.

PRS 22 indicative price guidance and structure

Tranche	Indicative volume (A$m)	Expected ratings (S/M)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1-a	ND	AAA/Aaa	2.6	140-145 area
A2	111	AAA/Aaa	4	210-220 area
B	52.5	AA/NR	4	235-245 area
C	21	A/NR	4	310
D	16.5	BBB/NR	4	410
E	9	BB/NR	3.9	610
F	7.5	B/NR	2.9	720
G	7.5	NR/NR	5	ND

Source: Westpac Institutional Bank 21 November 2018

Pepper conducted investor meetings regarding the transaction in the week of 5 November, which were arranged by Citi, Commonwealth Bank of Australia, National Australia Bank, Natixis, Standard Chartered Bank and Westpac Institutional Bank.