January 30, 2009 / 10:29 AM / 11 years ago

Danareksa plans Indonesia's first mortgage debt

JAKARTA, Jan 30 (Reuters) - Indonesia’s PT Danareksa Investment Management aims to launch 100 billion rupiah ($8.84 million) worth of mortgage-backed securities in February, the first such debt in the country, its chief said on Friday.

The debt, backed by receivables from loans extended by state-owned home lender PT Bank Tabungan Negara, will be launched on Feb. 3, carrying 13 percent coupon rates with an average maturity of 2.6 years.

Indonesia’s corporate debt market currently plays a relatively insignificant role in corporate financing in Southeast Asia’s biggest economy compared to bank lending.

The government, however, has stepped up efforts to boost corporate debt market including by revising regulations which had paved the way for the issuance of the expected first domestic mortgage-backed securities.

“The 100 billion rupiah issuance is only the first phase,” Danareksa’s president director Priyo Santoso told Reuters, saying the firm may launch more of such debt if market conditions are favourable.

PT Standard Chartered Securities Indonesia has been appointed as the underwriter for the debt issuance and PT Bank Rakyat Indonesia Tbk (BBRI.JK) as the custodian while financial firm PT Sarana Multigriya Finansial as the standby buyer, the firms said in a joint statement. ($1 = 11,310 rupiah) (Reporting by Dicky Kristanto; Editing by Ed Davies)

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