Media Coverage / 27 October 2020
SMF’s step to increase the protection of EBA SP investors
PT Sarana Multigriya Finansial (SMF) ensures that the company’s move to add a document addendum to Asset Backed Securities products in the form of Participation Letter (EBA SP) is an additional measure of protection for investors. Even so, the Director of SMF Heliontopo ensures that the performance of SMF’s EBA SP is still maintained with good performance quality.
The EBA-SP Addendum is part of an additional protection effort for Class A investors, by providing additional reserve funds intended to support the smooth payment of class A EBA-SP principal, so that the credit support provided can protect Class A EBA-SP principal and coupons in certain value scale. “This additional protection will reduce the risk of Class A EBA-SP investors even lower than before,” Heliantopo told Kontan.co.id, Monday (26/10).
The EBA SP issued by SMF is a fixed income instrument, as a safe and profitable investment vehicle for institutional investors, because it is very well structured and safe. Until now, the performance of the EBA-SP SMF is still maintained with good and promising performance quality, even in the midst of the Covid-19 pandemic.
Heliantopo emphasized that EBA-SP remains consistent with the best rating, namely idAAA from PT Pemeringkat Efek Indonesia (Pefindo) and has a competitive return that ranges from 7% -10%. This is reflected in the historical issuance of EBA-SP, where the Class A EBA-SP Coupon as an instrument with a triple A rating is always above the deposit return.
“EBA-SP’s performance is still brilliant with good performance, where coupon payments to Class A EBA-SP investors are still smooth,” he said referring to the EBA-SP audited EBA SP SMF Financial Report as of June 30, 2020, published at the end of September 2020.
In addition, in the Net Asset Change Report it appears that there is still a Class B EBA-SP Certificate Dividend. Both of these indicate that EBA-SP is a safe and profitable structured finance product, because it has been structured in such a way that a default protection mechanism is formed for its investors.
It should also be noted that Class B investors still get their investment income rights (dividends), this shows that the performance of the EBA Underlying KPR Pool is still very good, this automatically shows that Class A investors are still safe and protected from the risk of default. Currently, class B income is still in the range of 10-20 percent per year. In addition to the protection from Junior Class (Class B), Class A EBA-SP is also guaranteed by SMF as a credit enhancement provider.
Credit enhancement is a form of guarantee for one-time payment of senior fees and Class A coupons. This acts as additional protection for Class A investors. Considering this is a countercyclical policy, so it is expected that it will not be prolonged, we are sure that EBA-SP is still very safe, so investors do not need to worried about investing in EBA-SP even in the midst of a pandemic.
“The existence of a good EBA-SP performance, of course, can further convince investors that the EBA issued by the SMF with the best rating (idAAA) is a very safe and profitable investment vehicle for investors. EBA-SP SMF is very well structured and safe, so the risk is higher. low compared to other fixed opinion instruments, “he explained.
Since 2009 until now, SMF has initiated 13 securitization transactions using the KIK EBA and EBA-SP schemes, with a total value of IDR 12.156 trillion. Where 12 transactions were carried out in collaboration with Bank Tabungan Negara (BTN) and 1 transaction with Bank Mandiri.
Source : Kontan.co.id
Monday, October 26th 2020 / 09:37 PM