S

econdary mortgage financing firm PT Sarana Multigriya Finansial (SMF) plans to have three or four more bonds issuances this year to raise funds from the capital market for house mortgage financing.

The state-owned company completed the issuance of Rp 2 trillion (US$140 million) shelf registration bonds IV on Wednesday, which was the third tranche.

The bonds were divided into three series: the A series has a 370-day tenor with Rp 1 trillion offered at a fixed coupon rate of 6 percent per year, while series B bonds, which have a three-year tenor, are valued at Rp 800 billion with a coupon rate of 6.85 percent annually.

Lastly, series C bonds are valued at Rp 200 billion with an annual 6.95 percent coupon rate and a five-year tenor.

The coupon will be paid quarterly to investors and has received an idAAA rating from PT Pemeringkat Efek Indonesia (Pefindo).

The first and second tranches of SMF shelf registration bonds IV were issued last year, each valued at Rp 1 trillion.

This means that the company has only realized Rp 4 trillion of the total targeted funds of Rp 12 trillion.

“The next bonds issuance will depend on market conditions and the company’s liquidity. If everything goes well, we hope to issue three to four more bonds this year,” SMF director Heliantopo said in the Indonesia Stock Exchange (IDX) building.

The bonds’ proceeds will be used to provide financing for housing sectors through mortgage lenders.

They will also support the government’s 1 Million Houses program to provide housing for low-income households.

From its establishment in 2005 to December, SMF has channeled Rp 35.63 trillion from the capital market to mortgage lenders.

These loan disbursements have been able to finance 846,000 debtors for mortgages across the country, the company claimed.

SMF president director Ananta Wiyogo remains optimistic over the secondary mortgage market in Indonesia, considering the increasing consumer demand for housing loans — primarily for the low income segment — from year to year.

Last year alone, SMF booked Rp 7.3 trillion in total financing.

“We estimate that our total financing could reach Rp 9 trillion this year,” Heliantopo said.

In order to boost financing, SMF will continue to enhance its partnership with various institutions, such as the Public Works and Housing Ministry, as well as regional development banks across Indonesia.

A state-owned company under the Finance Ministry, SMF recorded Rp 1.18 trillion in revenue last year.

“This was the first time the company was able to book higher than Rp 1 trillion in revenue,” SMF director Trisnadi Yulrisman said after bond listing ceremony in Jakarta.

With higher revenue, the company estimated that it was able to record a net profit of between
Rp 390 billion and Rp 400 billion in the full year of 2017.

The audited results are still being processed.

Up to last year, SMF’s total assets reached Rp 15.6 trillion, comprising liabilities that were mostly in the form of debt papers worth Rp 7.7 trillion, and the rest in equity totaling Rp 7.8 trillion.