PT Sarana Multigriya Finansial (SMF) proposed rupiah senior unsecured bond III/2010 amounting up to IDR700 billion with 3 years maturity. Fitch Ratings has today assigned an expected rating of 'AA for the plans
The issue's rating takes into account the expected state support given the government's 100% ownership of 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 (almost five years), and the absence of an explicit state guarantee on its obligations.
SMF has provided a mortgage financing program to seven mortgage lenders in Quarter I 2010 totalling IDR938 billion at end March 2010. The company intends to expand its mortgage re-financing loan portfolio by IDR450 billion in 2010 with a focus on regional development banks, Islamic banks, and to a smaller extent, finance companies.
Loan expansion will be funded by existing capital and borrowings; the latter through the planned issuance of senior debt of up to IDR1 trilion this year. Fitch notes that there is also a plan to inject fresh equity by the government, possibly in 2011. SMF was established by the government of Indonesia in 2005 and is regulated and supervised by the Ministry of Finance.
No comments:
Post a Comment