Indonesia: SMF targets retail investors with new participation certificates

• Aug 02, 2018

State-owned secondary mortgage financing firm PT Sarana Multigriya Finansial (SMF) on Thursday launched a series of participation certificates for asset-backed securities, the EBA-SP BTN 01, in a move that aims to increase its issuance of asset-backed securities (EBA) for retail investors.

SMF is collaborating with BNI Sekuritas to utilize the latter’s customer base and extensive marketing network in order to attract retail investors.

“Before, the EBA-SP was mostly owned by pension funds and insurance companies. The retail EBA-SP is our effort to expand our investor base, to reach out to the millennial generation and other retail investors,” SMF president director Ananta Wiyogo said on Thursday at the Indonesia Stock Exchange.

The firm’s collaboration with BNI Sekuritas also aims to make it easier for retail investors to buy securities products through an e-trading portal. The EBA-SP BTN 01 has a T+1 settlement period.

BNI Sekuritas president director Adiyasa Suhadibroto said investors could buy the EBA-SP BTN 01 for a minimum Rp 100,000.

The EBA-SP BTN 01 has an idAAA rating from PT Pemeringkat Efek Indonesia (Pefindo), with a coupon rate of 8.6 percent per year. (bbn)

Source: http://www.thejakartapost.com/news/2018/08/02/smf-targets-retail-investors-with-new-participation-certificates.html