Australian non-bank lender Pepper Money is set to acquire HSBC’s NZ$1.4 billion mortgage portfolio in New Zealand, pending approval by the New Zealand Overseas Investment Office, with a focus on expanding its presence in the New Zealand market.
Facts
- Pepper Money has signed a binding agreement to acquire HSBC’s NZ$1.4 billion mortgage portfolio in New Zealand.
- The deal is expected to close in late November, subject to approval by the New Zealand Overseas Investment Office.
- The acquisition aims for a “smooth and efficient” transition for customers after completion.
- The acquired portfolio is estimated to have an outstanding balance of NZ$1.4 billion, boosting Pepper Money’s assets under management to A$18.9 billion.
- Mario Rehayem, CEO of Pepper Money, views this acquisition as a strategic step in their growth plan, highlighting their familiarity with the New Zealand market since 2011.
- Pepper Money plans to fund the acquisition using a combination of senior and mezzanine funding, with Pepper Money contributing the first loss equity, reflecting the portfolio’s prime performance.
