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Jakarta Post

SMF to issue more asset-backed securities this year

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, February 11, 2018   /   05:43 pm
SMF to issue more asset-backed securities this year State-owned secondary mortgage company Sarana Multigriya Finansial (SMF) president director Ananta Wiyogo (center), along with directors Heliantopo (left) and Trisnadi Yulrisman, talks to reporters during a press briefing on Jan. 27, 2017. It plans to raise Rp 2 trillion (US$147 million) through the issuance of asset-backed securities this year. (JP/Prima Wirayani)

State-owned secondary mortgage company PT Sarana Multigriya Finansial (SMF) plans to issue asset-backed securities worth Rp 2 trillion (US$147 million) this year in a collaboration with local banks.

SMF senior vice president and head of securitization and loan purchase, Sid Kusuma, expected the plan could be executed in the first quarter.  

“The asset-backed securities will be issued in the form of EBA-SP [participation certificates], which will come from more than one lender or originator,” he told reporters in Jakarta on Friday.

Read also: SMF plans to increase issuance of asset-backed securities

Sid further said SMF would team up with banks, such as state-owned lender Bank Tabungan Negara (BTN), to launch the debt paper.

Under the collaboration, the company will roll out and sell securities, backed with a pool of mortgage loans it purchased from a bank as the originator.

“The proceeds from the issuance of EBA-SP [participation certificates] will be used by Bank BTN to increase its loans,” Sid said.                                                                                           

Since 2009, SMF has securitized 11 housing loan packages worth Rp 8.15 trillion. Ten of the loan packages came from state-owned lender Bank BTN, while the other derived from state-owned lender Bank Mandiri. (ami/lnd)