BTN Seeks to Raise Rp 5t From Bond Sale in July
Jakarta. State-owned home lender Bank Tabungan Negara is seeking to raise Rp 5 trillion — $375 million — from selling bonds next month, the proceeds of which will be used to help fund a loan expansion to support the government's One Million Homes program.
The upcoming bond sale is the first of the lender's long-term plan to sell up to Rp 10 trillion worth of bonds in the next few years, the lender said in a statement received by the Jakarta Globe on Tuesday (13/06).
"Proceeds from the bond sale will be used to help fund loan expansion to support the government's One Million Homes program," Adi Setianto, a director at BTN, said in Tuesday's statement.
BTN will offer a three-year series A bond with an indicative annual coupon rate ranging from 7.65 percent to 8.3 percent. The lender will also offer a seven-year series B bond with an annual coupon rate of between 7.95 percent and 8.5 percent.
The lender will also offer a seven-year series C bond with an annual coupon rate of 8.2 percent to 8.7 percent and a 10-year series D bond with a coupon rate of around 8.3 percent to 8.9 percent.
Local rating agency Pemeringkat Efek Indonesia (Pefindo) has confirmed an idAA+ rating for BTN, reflecting the bank's low default risk compared to its domestic peers.
BTN will offer the bonds to investors on July 3-7 and will list them on the Indonesia Stock Exchange (IDX) on July 13.
BCA Sekuritas, BNI Sekuritas, CIMB Sekuritas Indonesia, Danareksa Sekuritas, DBS Vickers Sekuritas Indonesia, Indo Premier Sekuritas, Mirae Asset Sekuritas Indonesia and Trimegah Sekuritas Indonesia will be the underwriters for the bond issuance.
BTN booked strong earnings in the first three months of this year thanks to robust mortgage lending.
The lender's profit rose 21.03 percent to Rp 594 billion in the first three months of this year since the same period last year.
BTN's total outstanding loans stood at Rp 169.68 trillion by the end of March, a 18.7 percent increase since the corresponding period last year. As much as 90.35 percent came from mortgage loans, and the remainder from non-mortgage loans, including consumer and commercial loans.
The company's gross non-performing loans stood at 3.34 percent, lower than 3.59 percent in the same period a year previously.
BTN specializes in providing mortgages for middle- to lower-income Indonesian citizens.
BTN is the biggest distributor of the government's subsidized mortgage liquidity facility — known as the FLPP scheme — in which middle-income citizens with a maximum income of Rp 7 million a month can enjoy a subsidized lending rate of five percent or interests lower than the market rate.
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