NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010
Figures in tables are presented in billions of Rupiah, unless otherwise stated
55
18. TWO-STEP LOANS continued
Since 2008, the Company has used all facilities under the two-step loans program and the drawdown period for the two-step loans has expired.
The Company is required to maintain financial ratios as follows: a. Projected net revenue to projected debt service ratio should exceed 1.5:1 and 1.2:1 for the
two-step loans originating from the World Bank and Asian Development Bank “ADB”, respectively.
b. Internal financing earnings before depreciation and finance costs should exceed 50 and 20 compared to annual average capital expenditures for loans originating from World Bank and
ADB, respectively. As of December 31, 2011, the Company complied with the above mentioned ratios.
Refer to Note 37 for details of related party transactions.
19. BONDS AND NOTES
2011 2010
Outstanding Outstanding
Original Original
currency Rupiah
currency Rupiah
Bonds and notes Currency
in millions equivalent
in millions equivalent
Bonds Series A
Rp. -
1,005 -
1,005 Series B
Rp. -
1,995 -
1,995 Medium Term Notes “MTN”
Metra Rp.
- 59
- 47
Sigma Rp.
- 30
- 30
PT Finnet Indonesia “Finnet” Rp.
- 18
- 24
Promissory Notes Huawei Tech
US 60
545 23
211 PT. ZTE Indonesia “ZTE”
US 15
134 7
64 Total
3,786 3,376
Current maturities Note 17a 385
127
Long-term portion
Note 17b
3,401 3,249
a. Bonds
Interest Interest
Listed Issuance
Maturity payment
rate Bonds
Principal Issuer
on date
date method
per annum
Series A 1,005
The Company IDX
June 25, 2010 July 6, 2015
Quarterly 9.60
Series B 1,995
The Company IDX
June 25, 2010 July 6, 2020
Quarterly 10.20
Total 3,000
The bonds are secured by all assets owned by the Company. The underwriter of the bonds are PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas. And the trustee is PT
CIMB Niaga Tbk.
The Company received the proceeds of the issuance of bonds on July 6, 2010.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010
Figures in tables are presented in billions of Rupiah, unless otherwise stated
56
19. BONDS AND NOTES continued
a. Bonds continued The funds received from public offering of bonds net of issuance costs, are to be used for
increasing capital expenditure which consisted of: wave broadband bandwidth, softswitching, datacom, information technology and others, infrastructure backbone, metro network, regional
metro junction, internet protocol, and satellite system, and optimizing legacy and supporting facilities fixed wireline and wireless.
As of December 31, 2011, the rating for the bonds issued by PT Pemeringkat Efek Indonesia Pefindo is idAAA stable outlook.
Based on 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 5:1.
3. Debt service coverage is 125
As of December 31, 2011, the Company complied with the above mentioned ratios. b. MTN
Interest Issuance
Maturity payment
Notes Principal
date date
method
MTN Metra I
Phase 1 30
June 9, 2009 June 19, 2012
Quarterly Phase 2
20 February 1, 2010
February 2, 2013 Quarterly
Metra II Phase 1
20 December 28, 2011
December 28, 2014 Quarterly
Sigma 30
November 17, 2009 November 17,2014
Semi-annually Finnet
Phase 1 10
October 16, 2009 November 17, 2012
Monthly Phase 2
15 March 18, 2010
March 24, 2013 Monthly
The Arranger of the Medium Term Notes is PT Bahana Securities, Bank Mega is acting as Trustee, and PT Kustodian Sentral Efek Indonesia “KSEI” is acting as Collecting Agent and
Custodian. Proceeds from the issuance of MTN among others were used to expand the business and as working capital.
Metra secures with a minimum value of 40 of the outstanding MTN principal. The maximum value of 60 of the outstanding MTN principal is unsecured and at all times ranked pari passu
with other unsecured debts of Metra. Metra may buy back all or part of the MTN at any time before the maturity date of the MTN.
The MTN of Sigma and Finnet are not secured by a specific collateral, but secured by all of Sigma and Finnet’s assets. These movable or fixed property, either existing or in the future, are
collateral for assets of MTN holders and at all times ranked pari passu without any preference with other creditor privileges in accordance with prevailing regulations. Sigma and Finnet may
buyback all or part of the MTN at any time before the maturity date of MTN.
Based on the agreements, Metra, Sigma, and Finnet are required to comply with required covenants including maintaining financial ratios. As of December 31, 2011, Metra, Sigma, and
Finnet complied with the ratios.
Refer to Note 37 for details of related party transactions.
