Danareksa handle SMF bonds

PT Sarana Multigriya Finansial (SMF) appointed PT Danareksa Sekuritas as the underwriter of III/2010 bond issuance and MTN I/2010 with maximum worth of IDR1 trillion.
Danareksa will act as underwriter for both bond issuances scheduled before end of semester I/2010. SMF has set the maximum value of bond and medium term notes issuances worth each IDR500 billion.
SMF also readies to become one of the issuer of asset-backed securities (KIK-EBA) that uses housing loan bill from PT Bank Tabungan Negara Tbk (BTN) as the basic asset.

Fitch Ratings has affirmed SMF national long-term rating at AA(idn) and its Short-term rating at F1+. The issue ratings on its 370-day IDR senior unsecured bond I/2009 and II/2009 have also been affirmed at AA(idn).

At the same time, Fitch has assigned an expected rating of AA(idn) to SMF's proposed senior unsecured medium-term notes (MTN) amounting to IDR500 billion. The final rating on the issue is contingent on the receipt of final documents conforming to information already received.
SMF's National Rating takes into account expected state support given the government's 100% ownership in SMF, and the company's public role in developing a national secondary mortgage market to promote affordable homeownership.

The rating also recognises SMF's limited track record as a newly-established company, and the absence of an explicit state guarantee on its obligations. Nevertheless, Fitch understands that the state may inject additional capital into SMF, possibly in 2011, to facilitate the expansion of its financing activities.