Pepper Money Limited entered into a binding agreement to acquire mortgage portfolio in New Zealand from The Hongkong and Shanghai Banking Corporation Limited.

Pepper Money Limited (ASX:PPM) entered into a binding agreement to acquire mortgage portfolio in New Zealand from The Hongkong and Shanghai Banking Corporation Limited on September 1, 2023. Upon completion, Pepper Money and HSBC will work together to ensure a smooth and efficient transition for existing customers. Pepper Money will fund the transaction in a similar way to which way funded loan origination activity and have funded other loan book acquisition in the past, namely a combination of senior and mezzanine funding with Pepper Money contributing the first loss equity.

The transaction is subject to approval of the New Zealand Overseas Investment Office and is anticipated to complete in late November 2023.