JAKARTA (Yosefardi) – PT Bank Tabungan Negara (BTN) Tbk (BBTN) plans to sell its recapitalization (recap) bonds worth Rp6 trillion, a government bailout after the wake of financial crisis in 2007.
BTN got bailout of a total Rp13.8 trillion through recap bonds. The bank intends to replace the existing recap bonds with mortgage loan portfolios. BTN seeks to get 11% yield from mortgage loan portfolios, compared to maximum 5.5% yield from recap bonds.
Currently, BTN’s assets totaled Rp120 trillion. As of September 0213, BTN had disbursed loan of Rp92 trillion, grew by 22% from the same period of last year.