Press Release / 15 July 2020
During the Pandemic Quality of EBA-SP SMF Performance Maintained Good with Attractive Returns
Jakarta July 6th 2020 – PT Sarana Multigriya Financial (Persero) or SMF, again recorded the financial performance of Asset Backed Securities in the form of Participation Letters (EBA-SP) which are still well maintained. Besides that, the performance of securities with idAAA rating is still promising amid the situation of the Covid-19 pendemik.
EBA-SP SMF has a competitive return that ranges from 7% -10%, this can be seen from 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 return of deposits.
Based on the audited EBA-SP SMBA EBA-SP Financial Report as of December 31, 2019 which was published by the Company at the end of June 2020, it is seen that the performance of EBA-SP is still showing good performance, where there is still a smooth payment of coupons to EBA-SP Class A investors .
Besides that, according to the Director of SMF, Ananta Wiyogo, the Net Asset Change Report appears that there is still a Class B EBA-SP Certificate Dividend. Both of these shows that the EBA-SP is a safe and profitable structured finance product, because it has been structured in such a way as to form mechanism of protection against defaults for investors.
“It should also be noted that, Class B investors still obtain their investment income rights by obtaining the dividend earlier, this shows that the performance of the Underlying EBA KPR Pool is still good, this also shows automatically that Class A investors are still protected from default risk. At present, class B income is still in the range of 10-20 percent per year, “said SMF President Director, Ananta Wiyogo.
“Of course, with the EBA performance that is still well maintained, this has convinced investors that the EBA issued by the Company with the best rating (triple A), is a very safe and profitable investment tool for investors, because it is structured very well and safe, so the risks are lower than other fixed opinion instruments, “said Ananta.
Regarding the influence of the covid-19 pandemic conditions on the performance of the EBA-SP, Ananta said that it was indeed more or less enough to hit the property sector, especially the KPR. This was realized through the Government’s countercyclical policy to stimulate the economy, one of which was through the provision of holiday payments to KPR debtors. EBA-SP as an investment instrument that depends on cash flow from mortgage installments, is also inseparable from the impact.
SMF as the EBA-SP Publisher certainly has prepared anticipatory steps regarding the worst possible impact on investors due to the policy.
“In principle, the EBA-SP has been very well structured, so as to create the best protection mechanism for its investors. Besides the protection mechanism of the internal structure of the EBA-SP itself, SMF as the Issuer also provides a mechanism of protection for investors, through the provision of credit enhancements in the form of a one-time guarantee of payment of senior fees and Class A coupons. “We believe EBA-SP is still very safe,” Ananta said.
Ananta optimistic that in the future investors will be more confident about this effect, because this effect is issued by SMF which is a 100% BUMN owned by the government with idAAA rating from Pefindo, both in Corporation and Debt Securities.
Since 2009 until now, the SMF has initiated 13 issuance of securitization transactions using the KIK EBA and EBA-SP schemes, with a total value of Rp12,156 trillion. Where 12 transactions were carried out in collaboration with BTN and 1 transaction with Bank Mandiri.
All funds obtained from the EBA SP SMF’s public offering will be used to purchase a collection of selected House Ownership Credit (KPR) based on 32 selection criteria. All EBA SP SMF transactions receive idAAA ratings from Pefindo. The rating reflects the ability to pay obligations in a timely manner which is very strong and the risk of default is low.
EBA-SP is an instrument issued by PT. SMF and stipulated through Financial Services Authority Regulation (POJK) No.20 / POJK.04 / 2017 juncto POJK 23 / POJK.04 / 2014 concerning Guidelines for Issuance of Asset Backed Securities Reporting in the Form of Participation Letters (EBA-SP) in the Secondary Housing Financing Framework.
OJK has also set EBA-SP as a good product choice for investors. This is in accordance with a letter from the Financial Services Authority (FSA) regarding an appeal letter to place funds in Asset Backed Securities in the form of Participation Letters (EBA-SP) issued by the Housing Secondary Financing Company.