JAKARTA NNC - BNI Sekuritas and Sarana Multigriya Financial, also known as SMF, have launched a new securities product. The product, the first kind of retail participation letter in Indonesia, will be traded in the secondary market.
The participation letter-backed securities product targets the individual market, and has been officially launched by BNI Sekuritas and SMF at the Main Hall of the Indonesia Stock Exchange (IDX) on Thursday (08/02).
The product launching ceremony was conducted by President Director of BNI Sekuritas Adiyasa Suhadibroto, President Director of IMF Ananta Wiyogo, and President Director of IDX Inarno Djayadi.
At the ceremony, Ananta said that the Retail Asset-Backed Market Development Program was aimed at developing the number of asset-backed securities investors, by targeting individual investors and utilizing the position of existing asset-backed securities.
In the cooperation with BNI Sekuritas, SMF will take part as market maket to make the secondary asset-backed securities market become more liquid. Previously, many asset-backed securities are owned by institutional investors such as pension fund managers and insurance companies.
"The launching of the retail asset-backed securities product is part of our effort in expanding and developing our investor base, which are potential investors such as millennials and other elements of the public who want to invest. The retail asset-backed securities will become a new alternative for the public in investing in the capital market," Ananta said.
He continued that SMF had cooperated with BNI Sekuritas to implement the program, as BNI Sekuritas already owns an e-trading portal that provides services for the buying nd selling of mutual funds and other securities.
"We have decided to partner with BNI Sekuritas since we are confident that BNI Sekuritas is a company with a broad marketing network. We expect the Retail Asset-backed Securities product to attract individual investors so we can offer the product as an interesting and safe investment alternative," Ananta continued.
Ananta also hopes the retail asset-backed securities product to increase the number of capital market investment instruments so that investors have more choices for investments with competitive returns, and not just invest in existing securities such as stocks, bonds, or mutual funds.
The retail asset-backed participation letter is a safe fixed income investment product with high investment instrument liquidity. The settlement of buying and selling of this product is T+1, and customers can obtain the selling proceeds after the selling transaction settlement matures.
Moreover, the SMF Retail Asset-backed Participation Letter product that will be marketed by BNI Sekuritas is a Class A asset-backed securities of BTN 01, with rating of idAAA from Pefindo. The product offers attractive discount of 8.6 percent per year, with denomination of just IDR100,000. The product was listed on December 3, 2015, with final maturity date of March 7, 2022. However, it is predicted that the product will be paid off early, as the collective bill has weighed average life of 2.08 years.
Meanwhile, Adiyasa Suhadibroto said the Retail Asset-backed Parcitipation Letter product from SMF with coupon of 8.6 percent per year "is a very attractive and safe fixed income investment, and is currently only sold by BNI Sekuritas. The product's investors will obtain interest coupon payment every three years, and can sell the Retail Asset-backed Participation Letter any time if they need funds," he said.
The product can be bought by indvidual investors through the online trading platform of BNI Sekuritas and its branch offices.