Pepper Group has raised A$700 million through an issue of non-conforming residential mortgage-backed securities - the biggest securitisation deal in the company's history and, according to Pepper, the biggest non-conforming issue in Australia since 2006.Pepper Residential Securities Trust No.16 was upsized from $600 million at launch last week.The bulk of the senior notes, A1-u1, were issued in US dollars. The US$280 million of notes, which have a weighted average life of one year, were priced at 73 basis points over one-month Libor.The A$122 million of A1-a notes, which have a WAL of 2.2 years, were priced at 170 bps over the one-month bank bill swap rate. Pepper paid a margin of 130 bps on the equivalent notes when it issued last October.The $93.8 million of A-1 notes, which have a WAL of 2.2 years, were priced at 225 bps over one-month BBSW.The $61.6 million of B notes, which have a WAL of 3.9 years, were priced at 300 bps over swap.Pricing on the C, D, E, F, and G notes was not disclosed.Pepper said in a statement that the transaction benefited from the inclusion of the US dollar tranche, which helped contain the increase in funding costs.Twenty-two accounts participated in the deal, with 79 per cent of the notes going to real money investors and 76 per cent to offshore investors.Pepper has raised $1.1 billion of funding over the past month, having already sold a $400 million portfolio of mortgages in a "whole loan transaction".