Pepper starts marketing PRS 23 RMBS deal

Thursday, 14 February 2019

On 14 February, Pepper Group (Pepper) began taking indications of interest for a capped A$750 million (US$531.8 million) equivalent residential mortgage-backed securities (RMBS) transaction, PRS 23. The deal will include a US dollar denominated tranche and a euro denominated tranche backed by green mortgages.

PRS 23 indicative price guidance and structure

Tranche	Indicative volume (m)	Expected ratings (S/M)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1-a	A$100	AAA/Aaa	2.4	145-150
A1-u	US$ND	ND/ND	ND	ND
A1-G€	€ND	ND/ND	ND	ND
A2	A$109	AAA/Aaa	3.9	225-230
B	A$52	AA/NR	3.9	255-260
C	A$22	A/NR	3.9	330
D	A$16	BBB/NR	3.9	430
E	A$9	BB/NR	3.7	630
F	A$8	B/NR	2.7	740-750
G	A$9	NR/NR	5	ND

Source: Westpac Institutional Bank 14 February 2019

The Class C, D, E, F and G notes are not available for sale. Citi, Commonwealth Bank of Australia, National Australia, Societe Generale, Standard Chartered and Westpac Institutional Bank were mandated for the deal on 21 January.