Encourage The Awakening Of The Housing Sector, SMF Re-released EBA SP Worth IDR 500 Billion

Photo: Doc. SMF

JAKARTA - PT Sarana Multigriya Finansial (SMT) is said to have re-issued the Asset Cooperation Effect in the form of a Participation Letter with the EBA-SP SMF-BTN07 series with an idAA rating from PT Pemeringkat Efek Indonesia (Pefindo) officially listed on the Indonesia Stock Exchange (IDX) at the end of last week.

SMF President Director Ananta Wiyogo said the securitization transaction was part of the company's steps to support national economic stability.

"This at the same time encourages the rise of the housing sector in the midst of a pandemic," he said in a press statement on Monday, December 26.

According to Ananta, the property business actually requires a fairly large long-term fund.

He said this issuance was an active role for SMF and PT Bank Tabungan Negara Tbk. (BTN) in supporting the growth of the housing finance market in Indonesia.

"We are committed to increasingly realizing decent and affordable housing ownership for the community," he said.

Furthermore, Ananta explained, EBA-SP can be a diversification of investment for investors and provide long-term funds for mortgage distributors, as a mitigation of the risk of maturity mismatch.

EBA-SP has been structured very well, thus creating the best protection mechanism for its investors. In addition to the protection mechanism from the internal EBA-SP structure itself, SMF as the publisher also provides a mechanism for protecting investors, so it is believed that this instrument is still very safe," he explained.

To note, the EBA-SP SMF-BTN 07 is the result of the KPR asset securitization transaction process worth IDR 500 billion belonging to PT Bank Tabungan Negara (Persero) Tbk (BTN) issued by SMF as its publisher.

The issuance of EBA-SP SMF-BTN07 consists of Class A (senior) and Class B (junior).

Class A is offered through a public offering with a Weighted Average Life (average-weighted maturing) tenor of 3 years offered with a nominal value of IDR 452.5 billion (90.5 percent of the total bill) with a fixed interest rate of 7.7 percent per year.

Meanwhile, as a form of protection against Class A, a Class B class was formed with a total nominal value of IDR 47.5 billion (9.5 percent of the total collection of bills) offered through limited offers.

In the transaction, apart from playing a role as a publisher, SMF also acts as an arranger and credit supporter.

Meanwhile, BTN in this transaction acts as a creditor of origin and service provider (service provider), along with Bank Mandiri who acts as Wali Amanat and Bank Kustodian.

All funds obtained from the issuance of the EBA-SP SMF-BTN07 will be used to purchase the BTN Home Ownership Credit Bill Collection (KPR) selected based on 32 selection criteria amounting to Rp500 billion.

"We are optimistic that in the future investors will be more confident about this effect, because this effect was published by SMF, which is 100 percent owned by the government with an idAA rating from Pefindo, both corporately and debt securities," concluded Ananta.