PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 63
24. BANK LOANS continued
d. Citibank N.A
. continued 2. High Performance Backbone “HP Backbone” Loans continued
The facility was obtained to finance up to 85 of the cost of supplies and services sourced in Germany relating to the design, manufacture, construction, installation and testing of
high performance backbone networks in Sumatra pursuant to the “Partnership Agreement” dated November 30, 2001, with PT Pirelli Cables Indonesia and PT Siemens Indonesia for
the construction and provision of a high performance backbone in Sumatra.
The lender required a fee of 8.4 of the total facility. This fee is paid twice during the agreement period, 15 of the fee is required to be paid in cash and 85 is included in the
loan balance.
As of September 30, 2005 and 2006, the outstanding loan was US14.7 million Rp151,244 million and US10.5 million Rp96,663 million, respectively. The loan is
payable in ten semi-annual installments beginning in April 2004. Amounts drawn from the facility bear interest at a rate equal to the 6-month LIBOR plus
0.75 i.e., 2.97 and 5.04 as of September 30, 2005 and 2006, respectively.
b. On April 10, 2002, the Company entered into a loan agreement with Citibank N.A. as Arranger and Citibank International plc as Agent, which was supported by an export
credit guarantee obtained from Istituto per I Servizi Assicurativi del Commercio Estero “SACE Italy” providing a total maximum facility to US21.0 million. The facility was
used to finance up to 85 of material and services procured in Italy in connection with the design, manufacture, development, installation and testing of Sub System VI, as part of HP
Backbone
network. Amounts drawn from the facility bear fixed interest rate of 4.14. The loans are payable
in ten semi-annual installments beginning in December 2003. Total principal outstanding as of September 30, 2005 and 2006 was US11.1 million Rp114,797 million and US7.4
million Rp68,477 million, respectively.
During the period when the loans are outstanding, the Company is required to 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:
a. 3:1 for the period of April 10, 2002 to January 1, 2003 b. 2.75:1 for the period of January 2, 2003 to January 1, 2004
c. 2.5:1 for the period of January 2, 2004 to January 1, 2005 d. 2:1 for the period of January 2, 2005 to the full repayment date of the loans
3. Debt to EBITDA ratio should not exceed: a. 3.5:1 for the period of April 10, 2002 to January 1, 2004
b. 3:1 for the period of January 2, 2004 to the full repayment date of the loans
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 64
24. BANK LOANS continued
