PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 60
has obtained a written waiver from PT Bank Rakyat Indonesia Tbk, the trustee of the bonds, with regard to providing loans to certain subsidiaries which in aggregate exceed Rp500,000 million.
23. NOTES AND BONDS continued
b. Medium-term Notes
On December 13, 2004, the Company entered into an agreement with PT ABN AMRO Asia Securities Indonesia, PT Bahana Securities, PT BNI Securities and PT Mandiri Sekuritas
collectively referred as “Initial Purchasers” to issue Medium-term Notes the “Notes” for a total principal amount of Rp1,125,000 million. Proceeds from issuance of the Notes were used to
finance the payment of the remaining balance of the borrowings assumed in connection with the AWI acquisition amounting to US123.0 million.
The Notes consist of four Series with the following maturities and interest rates:
Series Principal
Maturity Interest rate
A 290,000
June 15, 2005 7.70
B 225,000
December 15, 2005 7.95
C 145,000
June 15, 2006 8.20
D 465,000
June 15, 2007 9.40
Total 1,125,000
Interest on the Notes is payable semi-annually beginning June 15, 2005 through June 15, 2007. The Notes are unsecured and will at all times rank
pari passu
with other unsecured debts of the Company. The Company may at any time, before the maturity dates of the Notes, repurchase the
Notes in whole or in part. On June 15, 2005, December 15, 2005 and June 15, 2006, the Company repaid the Series A, Series
B and Series C Notes. As of June 30, 2005 and 2006, the outstanding principal and unamortized debt issuance costs are
as follows:
2005 2006
Principal 835,000
465,000 Debt issuance costs
1,192 379
833,808 464,621
Current maturities 224,188
464,621 Long-term portion
609,620 -
As of June 30, 2006, the rating for the Notes issued by Pefindo is AAA.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 61
23. NOTES AND BONDS continued
b. Medium-term Notes
continued During the period when the Notes are outstanding, the Company should comply with all covenants
or restrictions including maintaining financial ratios as follows:
1. Debt service coverage ratio should exceed 1.5:1 2. Debt to equity ratio should not exceed 2:1
3. Debt to EBITDA ratio should not exceed 3:1
As of June 30, 2006, the Company complied with the covenants.
24. BANK LOANS
