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Jakarta Post

SMF plans to increase issuance of asset-backed securities

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, March 22, 2017   /   07:04 am
SMF plans to increase issuance of asset-backed securities State-owned secondary mortgage financing firm PT Sarana Multigriya Finansial (SMF) president director Ananta Wiyogo (center) talks to reporters on Jan. 27 in a press briefing accompanied by directors Heliantopo (left) and Trisnadi Yulrisman. (JP/Prima Wirayani)

State-owned secondary mortgage financing firm PT Sarana Multigriya Financial (SMF) plans to increase the issuance of asset-backed securities in the form of participation certificates (EBA-SP) to Rp 2 trillion (US$150.28 million) this year, up from Rp 1.5 trillion last year.

SMF president director Ananta Wigoyo told reporters on Tuesday that the figure would be part of the company’s total securities issuance set for 2017 at Rp 5.7 trillion. The issuance of EBA-SP is aimed at supporting the government’s effort to provide 1 million houses to middle- and lower-income families in 2017.

“Last year our total issuance reached Rp 5.1 trillion, higher than the planned Rp 4.4 trillion,” Ananta said after a gathering with executives of insurance and pension fund companies about the dissemination of EBA-SP.

(Read also: Recognizing the benefit of asset recycling)

EBA-SP is an investment instrument issued by SMF under the Financial Services Authority Regulation No. 23/POJK.04/2014 on the issuance and reporting of EBA-SP. The ruling allows SMF to sell securities to the market, backed with a pool of mortgage loans it has purchased from a bank as the originator.

Since 2009, SMF had facilitated nine EBA-SP with Bank Tabungan Negara (BTN) as the originator and one transaction with Bank Mandiri, from a total securitized housing loan of Rp 7.2 trillion, Ananta said.

“Besides the two banks, SMF is now cooperating with 16 regional development banks, six sharia-based commercial banks and business units and seven financing companies for future issuance of EBA-SP,” he said. (yon)