JAKARTA (TheInsiderStories) – State-owned fund manager, PT Bahana TCW Investment Management launched an asset-backed securities (ABS) collective investment contract (CIC) worth of Rp1.3 trillion (US$91.54 million), said the management to the media today (09/5).
This instrument is an investment with a portfolio consisting of pension loan receivables of state civil servants with Indonesian medium lender PT Bank Bukopin Tbk (IDX: BBKP) as the issuer of securities.
Bahana Investment’s President Director Edward Lubis said this instrument is an investment choice for investors seeking investments diversification that provides attractive returns, higher than bonds.
Moreover, the source of principal and coupon payments is from clear cash flow, namely pension benefits paid by PT Taspen so the rating agency Pefindo gives a AAA rating or relatively low investment risk.
ABS CIC Bahana Bukopin has two categories, namely the A1 category with a three-year tenor and 9.25 percent coupon offered through a public offering. Meanwhile, the A2 category is a product offered through a private placement with a seven-year tenor and 10 percent coupon.
“With this product can be a choice for a variety of investors, both retail investors and institutional investors, such as pension funds, companies,” he said.
This product features a coupon payment and principal repayment every three months, so investors will receive investment returns in the form of principal payments up to 100 percent until due date or in August 2022.
Bahana TCW Investment Management which established in 1994 is a joint venture company between PT Bahana Pembinaan Usaha Indonesia (BPUI) and Trust Company of the West (TCW), an investment management company based in Los Angeles, United States.
The company has 25 years of experience and has institutional and retail clients. As of August 2019, BPUI’s mutual fund under management reached Rp49.74 trillion from all types of asset classes.
Three days ago, the Ministry of State Own Enterprises (SOEs) has picked BPUI to lead an insurance holding company, hope that the formation of insurance holding completed in October 2019.
Deputy Minister for SOEs Gatot Trihargo claimed the ministry had completed a feasibility study related to the establishment of the insurance holding. BPUI will manage PT Asuransi Kredit Indonesia, PT Asuransi Jasa Indonesia, PT Asuransi Asei Indonesia, PT Reassurance Indonesia Utama (Indonesia Re), and PT Reassurance Nasional Indonesia (National Re).
After the finalization of other financial businesses restructuring, the ministry will form a financial services holding to manage four state-owned lender, namely PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX:BBTN), PT Bank Mandiri Tbk (IDX:BMRI), PT Bank Rakyat Indonesia Tbk (IDX:BBRI), and PT Pegadaian under financial company, PT Danareksa.
The country’ Financial Service Agency and the central bank have both been pushing for banks to merge to shore up the companies equity. The regulators want only halve of 120 banks operating across the archipelago.
The holding companies are very important to strengthen the companies, as well as making them more efficient and transparent. Thus, the reasoning goes, SOEs will gain the capacity to compete not only in the domestic market but also against multinational corporations on a global scale.
Its expect the holding establishment aims to ease command and monitoring. It will also be more effective in terms of company’ operation. So state-owned enterprises can act not only as bureaucracy but also a corporation.
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