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SMF aims for retail investors with EBA-SP
State-owned secondary mortgage financing firm PT Sarana Multigriya Finansial (SMF) is looking to interest retail investors in its asset-backed securities (EBA-SP) in order to enlarge its investor base
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tate-owned secondary mortgage financing firm PT Sarana Multigriya Finansial (SMF) is looking to interest retail investors in its asset-backed securities (EBA-SP) in order to enlarge its investor base.
SMF launched the EBA-SP BTN 01 series last week, which allows investors to purchase the product for a minimum of Rp 100,000 (US$6.89), with a coupon rate of 8.6 percent annually.
“The EBA-SP from SMF with a coupon of 8.6 percent per year is a very attractive and safe fixed-income investment, and it is currently only sold through [securities firm] BNI Sekuritas,” Adiyasa Suhadibroto, BNI Sekuritas president director, said during the product launch at the Indonesia Stock Exchange building in Jakarta recently.
The coupon will be paid every three months and investors are allowed to take out their investment anytime they want, he added.
The EBA-SP BTN 01, which received an idAAA rating from rating agency PT Pemeringkat Efek Indonesia (Pefindo), has a T+1 settlement period.
Retail investors can buy EBA-SP BTN 01 through an online platform owned by BNI Sekuritas, as well as through BNI Sekuritas offices across the archipelago.
SMF is collaborating with BNI Sekuritas to utilize the latter’s customer base and extensive marketing network in order to attract retail investors.
“Previously, EBA-SP have mostly been bought by pension funds and insurance companies. Targeting retail customers for the EBA-SP is our effort to expand the investor base, to reach out to the millennial generation and other retail investors,” SMF president director Ananta Wiyogo said during the launch.
SMF director Heliantopo said the EBA-SP BTN 01 was only the first step in the company’s move to sell other EBA-SP products that it would launch for retail investors in the future.
EBA-SP is not a new instrument in Indonesia’s capital market. The instrument was first offered in 2015.
I Made Bagus Tirthayatra, deputy director of investment management and licensing of the Financial Services Authority (OJK), said that thus far, the total EBA-SP issuance had reached Rp 14.2 trillion.
He said that asset-backed securities had continuously shown satisfying growth. However, Tirthayatra also acknowledged that the EBA-SP had not been popular in the market because of a lack of information.
