SMF Distributes Rp 8.24 Trillion Financing Throughout 2017

INDUSTRY.co.id - Jakarta - PT Sarana Multigriya Finansial or SMF (Persero) is channeling capital market funds to mortgage okers in the housing finance sector through securitization and lending transactions reaching Rp8.24 trillion throughout 2017.

"The financing figure increased 15.4 percent compared to 2016 of Rp7.14 trillion," SMF President Director Ananta Wiyogo said in a statement received by media crews in Jakarta on Friday (2/3/2018).

The cumulative total accumulated funds that have been streamed into the SMF financing sector from 2005 to December 2017 reached Rp35, 632 trillion.

The achievement is based on data of financial statements for the period of December 31, 2017 in the form of securitization activities of Rp1 trillion and lending of Rp7.24 trillion.

SMF's total assets in 2017 amounted to Rp15.66 trillion, up 19.35 percent from the previous year of Rp13.12 trillion. Loan disbursement position as of December 31, 2017 reached Rp 11.102 trillion or an increase of 33.4 percent compared to 2016 of Rp8.32 trillion.

The net profit in 2017 reached Rp397 billion, up 25.2 percent compared to the previous year of Rp317 billion.

Growth in loan disbursements was also accompanied by the issuance of corporate bonds as a source of funding, including the issuance of corporate sukuk for the first time.

During 2017, SMF has issued Rp4,177 trillion of bonds through the issuance of Rp1,677 trillion PUB III bonds, Rp 500B Sukuk Mudharabah, PUB IV phase I Rp1 trillion and PUB IV phase II Rp1 trillion.

Up to the end of 2017, SMF's outstanding (outstanding) debt reached Rp7.202 trillion, based on the financial statement data of December 31, 2017.

Securitization transactions, from 2009 to 2017, SMF has facilitated 11 securitization transactions. Meanwhile, for financing cooperation, SMF has cooperated with commercial banks, sharia banks, regional development banks (BPD), and finance companies.

In 2017, SMF also receives support from the Financial Services Authority through the Financial Services Authority (POJK) Regulation No: 20 / POJK.04 / 2017 juncto POJK No: 23 / POJK.04 / 2014 on Guidelines for Issuance and Reporting of Asset Backed Securities (EBA-SP) in the framework of Secondary Housing Financing.

The regulation further reinforces the position of SMF in conducting securitization activities as an issuer of EBA-SP, in accordance with the provisions of Presidential Regulation No: 101 of 2016, regarding the second amendment to the Presidential Regulation on Secondary Housing Financing.

SMF's role becomes more intact, both as a securitization arranger, credit supporter and investor, as well as publisher of EBA. "The POJK's presence is also strategic to increase the growth of mortgage volume in Indonesia, as well as providing an alternative liquidity solution for mortgage lending banks by utilizing the capital market as a source of funding," said Ananta.

Through securitization, he continued, long-term funds from the capital market are used for housing finance activities.