PT Sarana Multigriya Finansial issued sustainable bonds of Rp2 trillion and SUKUK of Rp100 billion or totally Rp2.1 trillion - Photo: The Company.

JAKARTA (TheInsiderStories) – The state-owned home mortgage financing company, PT Sarana Multigriya Finansial (SMF) issued sustainable bonds of Rp2 trillion and SUKUK of Rp100 billion or totally Rp2.1 trillion (US$147.88 million). The fresh funding will be used for giving loan to the banks, said management on the written statement on Friday (07/5).

The bonds consist of three series, namely Series A bonds with a value of Rp428 billion and a rate of 7.5 percent and tenor 370 days. Then, Series B bonds with a value of Rp640 billion and a rate of 8.5 percent and tenor 3 years. Lastly, Series C bonds with a value of Rp932 billion and tenor 5 years with a fixed rate of 8.75 percent.

Besides that, SMF also issued SUKUK of Rp100 billion with tenor 370 days. This issuance is part of SUKUK Mudharabah. The total fund of bonds is Rp2 trillion and SUKUK is Rp19 trillion, said SMF’ director of securitization and financing Heliantopo.

The funds obtained from the bonds will be used for giving loan to the banks and supporting SMF function as special mission vehicle. The issuance is the way of SMF to provide long-term funding for banks which focused on mortgage.

“The issuance is to support one million programs and also to expand house availability affordable for Indonesian,” he said.

Previously, the company had issued bonds with a total value of Rp11.91 trillion. Since 2009, the company has issued bonds 38 times with value of Rp31.7 trillion.

This year, SMF needs funding of Rp9 trillion to finance four projects. Last year, the state-enterprises’ funding amounted of Rp6.4 trillion. The company will fulfill the funds through several instruments, such as a bond, medium-term notes, and loans.

While the president director Ananta Wiyogo explained, this year, SMF targeting to finance the development 350 units homestay 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.

The second program is the construction of houses in 32 slum Areas around the archipelago. SMF will synergize 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 help the government to revitalize 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.


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