Pepper Money : prices $1 billion RMBS, including a $330 million green tranche

Pepper Money (ASX: PPM) today priced Pepper Prime 2022-1 (the transaction), its first Residential Mortgage-Backed Security (RMBS) transaction for 2022 under the recently renamed Pepper Prime programme (formerly I-Prime). The transaction includes a senior A1-G green note (or green tranche).

Proceeds from the transaction will support the continued growth of Pepper Money's mortgage business, including the financing of eligible energy efficient homes¹. Pepper Money grew mortgage originations in 2021 by over 89% to a record $6.4bn.

In 2018, Pepper Money was the firstAustralian non-bank lender to issue green notes under its Green Bond Framework². Since its launch, Pepper Money has financed energy efficient homes, helping customers reduce their carbon footprint via an estimated saving of 1,668.9 tonnes of Co2 per annum.³

Commenting on the transaction, Pepper Money's CEO, Mario Rehayem, said: "As one of Australia's leading non-bank lenders, we continue to demonstrate our green lending credentials, providing industry leadership, and seek to drive change by helping our customers to purchase or construct energy efficient homes."

Pepper Money's Treasurer, Anthony Moir said "I am delighted to see strong demand for this deal, particularly in light of recent market volatility. It is a very positive result and sets us up for a strong start to our 2022 funding programme."

"We would like to thank our arranger and Joint Lead Manager Commonwealth Bank of Australia as well as well as our other Joint Lead Managers including, J.P. Morgan Securities Australia Limited and National Australia Bank Limited."

The transaction will settle on 16 March 2022.

Note Class	A1 & AI-G	A2	B	C	D	E	F	G
Coupon 1M BBSW+	+0.96%	+1.75%	2.10%	2.25%	2.75%	4.50%	7.00%	ND

This is Pepper Money's fifth time offering senior A1-G green notes. Copies of Pepper Money's Green Bond Framework, Second-Party Opinion (SPO) and Annual Review can be found at https://www.pepper.com.au/investors/debt-investors/green-bonds.

¹Energy efficient homes that meet the eligibility criteria and meet the definition of Australian green residential buildings that met the respective local state-based construction standards.

²Pepper Money Limited Green Bond Framework: www.pepper.com.au/investors/debt-investors/green-bonds

³Based on Co2 emissions calculations undertaken by Strategy. Policy. Research (http://strategypolicyresearch.com.au/) on the green mortgage collateral in Pepper Money's PRS 22, PRS 23, PRS24 and PRS25 transactions completed over 2018, 2019.

For more information please contact:

Investor relations contact
Catherine Buckmaster
[e-mail]
P: [phone]

Media contacts
Helen Karlis
Domestique Consulting
M: 0419 593 348
[e-mail]

Celia Moore
Domestique Consulting
M: 0432 344 069
[e-mail]