Pepper starts marketing PRS 23 RMBS deal

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.

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