PT Sarara Multigriya Financial (Persero) plans to issue debt securities with a total of Rp2 trillion, consisting of V phase V sustainable bonds in 2021 worth Rp1.9 trillion and Sukuk mudharabah I phase III Rp100.010 billion.

On the brief prospectus published by SMF, on Monday (25/1), the company offers the phase V bonds in two series, namely A series, a-370 days tenor bond with a principal amount of Rp1.5 trillion carrying a coupon of 4.75%; B series, a-3 years tenor of Rp400,660 billion bond carrying a 5.75% coupon.

The bond sales are part of the company's larger bond sales program, aiming to raise  Rp 19 trillion.

Meanwhile, sukuk mudharabah phase III provides a profit-sharing of about 4.75%. The sukuk sales are also part of the company's sustainable sukuk mudharabah sales program aiming to raise Rp2 trillion.

Rating agency PT Pefindo granted a rating for both the bonds and sukuk. The bonds and sukuk mudharabah to be issued have received ratings from PT Pefindo, namely 'AAA' and 'AAA (sy).'

The company has appointed BCA Sekuritas, BRI Danareksa Sekuritas, CIMB Niaga Sekuritas, DBS Vickers Sekuritas, Maybank Kim Eng Sekuritas, and Trimegah Sekuritas Indonesia, as underwriters for the issuance of bonds and sukuk .The trustee is Bank Mandiri.

SMF plans to use proceeds from the sale of bonds and sukuk to refinance the part of the equity funds used as loans to mortgage lenders,  amounting to Rp5.532 trillion, based on the company financial statement dated September 30, 20220. Meanwhile, the proceeds from the sukuk will also be used to replace equity funds that have been channeled for secondary financing of Islamic housing through the issuer's sharia business unit.

The company indicated that the offering period for the bond and sukuk sale is on February 4-5, 2021, while the listing date on the IDX will be on February 11, 2021.