Pepper Money Ltd has completed its first residential mortgage backed securitisation.

The UK transaction generated £260m in funding via the sale of UK residential mortgage backed bonds issued under the Polaris 2019-1 brand.

Polaris 2019-1 was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.

Pepper Money is a wholly owned subsidiary of global financial business Pepper Group, which has issued over 30 residential mortgage backed securitisation transactions.

Laurence Morey, CEO of Pepper Money, said: “There was strong investor demand for this securitisation, which was over-subscribed in a competitive and uncertain market. This is testament to the quality assets we are able to generate at Pepper Money and the strength of Pepper’s global franchise.

“While Polaris 2019-1 happens to be our first UK transaction it builds on Pepper’s exceptional multi cycle track record as a committed capital markets issuer. Polaris 2019-1 is another important step in our growth plans to develop a market leading specialist lending business built on a diverse and sustainable funding strategy.”