JAKARTA (TheInsiderStories) – Indonesian state-owned lender, PT Bank Tabungan Negara Tbk (IDX: BBTN) planned to securitize synthetic home ownership loans to get funds Rp 2 trillion (US$141.84 million), said the company on Thursday (04/04). 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.
“By using synthetic home loan securitization, the separated portfolios do not come out of the bank book so the growth in housing loans will be much greater,” he told TheInsiderStories on Thursday (04/04).
BBTN is in the process of obtaining a letter requesting approval from the Financial Service Authorities 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.
“It looks like in first semester,” he continued.
While, Soeko explained, to strengthening the bank’ liquidity and capital, the wholesale funding plan is also used to pursue loan expansion of 13 to 15 percent in 2019.
For the record, referring to the December 2018, Bank Tabungan Negara report managed to record assets worth Rp308.47 trillion, 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 has managed to reap a net profit of Rp3.2 trillion or only grew Rp 5.92 percent.
The bank 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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