Indonesia’s Sarana Multigriya Offers US$176M Local Bond

PT Sarana Multigriya Finance partnering with government-owned lender, PT Bank Tabungan Negara Tbk (IDX: BBTN) released asset-backed securities with a principal amount of Rp576.73 billion (US$41.19 million) - Photo by the Company

JAKARTA (TheInsiderStories) – A State enterprise, PT Sarana Multigriya Finansial (SMF) start offering its bond issuance valued Rp2.51 trillion (US$176 million), said the company today (03/19). The fresh funding will be used to replace the equity funds that have been channeled to the home ownership loan dealers.
This bond consists of two series. The series A amounted Rp522 billion and series B worth is Rp1.98 trillion. Series A has 7.75 percent coupon and matured on April 2, 2020. While the series B has 8.45 percent yield, matured on March 22, 2022.

Offering date of the bond is starting March 19. Allotment and bond distribution are scheduled to be on March 20 and 21, respectively. Its expecting, the bond can be recorded in capital market on March 25 annd the initial interest will be paid on June 22.

Guarantor of the emissions are PT BNI Sekuritas, PT BCA Sekuritas, PT CSG-CIMB Sekuritas Indonesia, PT Indo Premier Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM).

SMF is quite intense in issuing bond to get fresh funding, as this is the second bond issued this year by the financing firm, after the first one valued Rp1.85 trillion in February. This is also the eighth stage of Sarana Multigriya‘ bond targets Rp12 trillion funding. In the last two years, SMF has issued Rp11.91 trillion bond.

The company needs funding of Rp9 trillion in 2019 to finance four projects. Last year, the state-enterprises’ funding amounted of Rp6.4 trillion. SMF’ director Heliantopo said on Jan. 22, the company will fulfill the funds through several instruments, such as bond, medium term notes, and loans.
While, the president director Ananta Wiyogo explained, this year, SMF targeting to finance the development 350 units home stay in four tourist destination areas namely Borobudur in Central Java, Labuan Bajo in East Nusa Tenggara, Mandalika in Lombok, and Lake Toba in North Sumatera.
Second program is the construction of houses in 32 slum Areas around the archipelago. SMF will synergise with the Ministry of Public Works and Public Housing to participate in overcoming slums through renovation or construction of houses.
Another program, which will also be launched by SMF in 2019, is the Post-Disaster Mortgage Program. The program will helps the Government to revitalizing community settlements after natural disasters in Indonesia.
He continued, SMF will work with national banks to channel financing to homes affected by the disaster. For the initial phase, this program will be for 3,000 State civil apparatus affected by natural disasters in Lombok, West Nusa Tenggara.
“SMF will collaborate with Bank NTB Syariah as a post-disaster mortgage lending agency,” said Wiyogo.
In addition, SMF also has a Fiscal Load Reduction Program. This is realized through the provision of support to the Government in the House Finance Liquidity Facility mortgage program.
With the support of SMF, the number of houses to be financed increased from the original 60,000 units to 72,000 units. This has a positive impact to facilitate mortgage for low income communities.
US$1: Rp14,200
Written by Staff Editor, Email: