PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
54
16. LONG-TERM LOANS AND OTHER BORROWINGS continued
b. Bonds and notes continued i. Bonds continued
The Company received the proceeds from the issuance of bonds on June 23, 2015. The funds received from the public offering of bonds net of issuance costs, were used to finance
capital expenditures which consisted of wave broadband, backbone, metro network, regional metro junction, information technology application and support, and merger and acquisition of
some domestic and international entities. As of December 31, 2016, Corporate bond ratings provided by Pefindo is idAAA stable outlook.
Based on the indenture trusts agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows:
1. Debt to equity ratio should not exceed 2:1 2. EBITDA to finance costs ratio should not be less than 4:1
3. Debt service coverage is at least 125 As of December 31, 2016, the Company has complied with the above-mentioned ratios.
ii. MTN
GSD
Notes Currency
Principal Issuance date
Maturity date Interest
payment period
Interest rate per annum
Series A Rp
220 November 14, 2014
November 14, 2019 Semi-annually
11 Series B
Rp 120
March 6, 2015 March 6, 2020
Semi-annually 11
Total 340
Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of Medium Term Notes MTN PT Graha Sarana Duta Year 2014 dated November 13, 2014 as
covered by notarial deed No. 30 of Arry Supratno, S.H., GSD will issue MTN with the principle amount up to Rp500 billion in series.
PT Mandiri Sekuritas act as the Arranger, Bank Mandiri as the Monitoring and Insurance Agent, and PT K
ustodian Sentral Efek Indonesia “KSEI” as the payment agent and custodian. The funds obtained from MTN are used for investment projects.
Trade receivables, inventories, land and building related with investment development funded by MTN that are owned or will be owned by GSD, have been pledged as collateral for MTN
Notes 5, 6, and 9c.ix Under to the agreement, GSD is required to comply with all covenants or restriction including
maintaining financial ratios as follows : 1. Debt to equity ratio should not exceed 6.5:1
2. EBITDA to interest ratio should not be less than 1.2:1 3. Minimum current ratio is 120
4. Maximum leverage ratio is 450
As of December 31, 2016, GSD has complied with the above-mentioned ratios.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
55
16. LONG-TERM LOANS AND OTHER BORROWINGS continued
b. Bonds and notes continued ii. MTN continued
Finnet
Notes Currency Principal
Issuance date
Maturity date
Interest payment period
Interest rate per annum
MTN I Finnet year 2015 Rp
200 July 1, 2015 July 1, 2022 Quarterly
11
Based on Agreement of Debt Acknowledgement of Medium Term Notes MTN I Finnet Year 2015 as covered by notarial deed No. 47 dated June 30, 2015 of Utiek R. Abdurachman, S.H.,
MLI., MKn., Finnet will issue MTN through private placement with the principal amounting to Rp200 billion.
PT BNI Asset Management acts as the arranger, Bank Mega as the trustee and KSEI as the payment agent and custodian.
The funds obtained from MTN are used for Finnet’s working capital related to Retail National Channel Bank
project as Telkomsel’s billing payment aggregator. The rating of the MTN issued by PT Fitch Rating Indonesia is A ind. The MTN is not secured
by an y specific collateral. The MTN are secured by all of Finnet’s assets, movable or non-
movable either existing or in the future. Under the agreement, Finnet is required to comply with all covenants or restrictions, including
maintaining financial ratios as follows : 1. Debt to equity ratio should not exceed 3.5:1
2. EBITDA to interest ratio should not be less than 2.5:1
In 2016, Finnet has made early payments on MTN amounting to Rp200 billion through refinancing of UOB with the term of the agreement for 2 year.
iii. Promissory Notes
Supplier Currency
Principal Issuance date
Principal payment schedule
Interest payment period
Interest rate per annum
PT Huawei
a
US 0.2
April 30, 2013 -
Semi-annually 6 months
LIBOR+1.5 ZTE
US 0.1 August 20, 2009
b
February 4, 2017 Semi-annually
6 months LIBOR+1.5s
In original currency
a
Has been fully paid on July 30, 2016
b
Based on the latest amendment on August 15, 2011
Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company, ZTE and PT Huawei, the promissory notes issued by the Company to ZTE and
PT Huawei are vendor financing facilities with no collateral covering 85 of Hand-over Report Berita Acara Serah Terima projects with ZTE and PT Huawei.
