JAKARTA (TheInsiderStories) – A state-owned lender PT Bank Tabungan Negara Tbk (IDX: BBTN) bought 30 percent or 33,000 shares of PT Permodalan Nasional Madani Investment Management (PNMIM) for Rp114.3 billion (US$8.16 million).The signing of a Conditional Shares Purchase Agreement (CSPA) between both parties held in Jakarta today (04/22).
President Director of BBTN Maryono, explained his party had included a planned to have an investment management company for the periods 2019-2021. This is part of the bank’ business, housing finance, and other related industries.
“We want to expand the scope of our business, especially to improve business performance and make the “One Million Houses Program” a success,” he said.
Maryono stated that with the presence of the new subsidiary, the company would be more free to collect and provide long-term low-cost funds. With the option of raising cheaper funds more broadly, the lender hopes to provide a more affordable housing finance scheme for the people of Indonesia.
In addition, the new investment management company is also targeted to increase the company’ fee-based income. BBTN plans to sell various investment products with the presence of these subsidiaries. These include mutual funds, Limited Participation Mutual Funds, Fund Management Contracts, Asset Backed Securities, and Real Estate Investment Funds.
The company also targets to sell various wealth management products that will be offered to BBTN Priority customers.
Furthermore, the plan to purchase PNMIM shares will be immediately submitted to the Financial Services Authority.
Maryono hopes that the transaction can be completed by June 2019. Meanwhile, in the bank’ business plan for 2019-2021, the lender also targeted to have subsidiaries in the fields of life insurance, general insurance and finance companies.
The formation of various subsidiaries is focused on supporting the provision of affordable homes for the people of Indonesia. The lender also planned to secure synthetic home ownership loans to get funds Rp2 trillion this year.
By raising the funds, its expected support the bank’ housing loan growth.
Director of BBTN Iman Nugroho Soeko, explained the underlying of this securitization are future cash flows from principal repayments and interest payments from a set of separated mortgage loans. The underlying house ownership loan is a housing loan portfolio that has been chosen and separated.
BBTN is in the process of obtaining a letter requesting approval from the Financial Services Authority division of the banking supervisory.
In addition to securitization, Soeko also confirmed this year it would re-issue the remaining shares of sustainable bonds with total amount up to Rp3 trillion, from the total available quota of Rp5 trillion in this year.
He revealed, to strengthening the bank’ liquidity and capital, the wholesale funding plan is also used to pursue loan expansion of 13-15 percent in 2019.
At the of 2018, Bank Tabungan Negara report managed assets worth of Rp308.47 trillion, or up 18.02 percent compared to previous year. Loan growth rose 19.48 percent to Rp237.75 trillion and deposits up 19.09 percent from Rp177.56 trillion to Rp211.46 trillion in 2018.
The bank reaped a net profit of Rp3.2 trillion or only grew Rp5.92 percent. BBTN expect will begin the entry process to BOOK IV in 2020.
Director Strategy, Risk and Compliance Mahelan Prabantarikso, said the process of adding capital to be able to enter the level is most likely through a rights issue. Other ways use assistance from the state-owned holding bank that will be formed in this year.
As of September 2018, the state-owned bank‘ core capital amounts to Rp19.03 trillion. Until the end of 2018, Mahelan predicts, the value will increase to Rp21 trillion.
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