PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
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15. LOANS FROM BANKS AND FINANCING INSTITUTIONS continued PT Bank Central Asia Tbk BCA continued
The above loans are collateralized by undeveloped land managed by KSO Summarecon Serpong Note 10 and escrow account owned by KSO Summarecon Serpong Note 14.
Under the loan agreements of the Company and SCK with BCA, the Company and SCK generally must comply with several covenants, including the following:
a. Maintain certain financial ratios as follows: 1 Interest-bearing debt to equity ratio of not more than 3:1 in as of June 30, 2013 and
December 31, 2012, 2011 and 2010. 2 EBITDA to interest expense ratio of not less than 2.5:1 as of June 30, 2013 and December
31, 2012, 2011 and 2010. b. The Company and SCK must provide written notice to the creditors prior to performing the
following activities, among others: 1 Obtain from or provide loans to other parties, except under normal business transactions.
2 Act as pledgor or pledge the Company’s assets to another party. 3 Enter into merger or acquisition transactions, except for mergers or acquisitions made with the
entity or its different businesses and which do not have a negative impact on the Company’s financial condition and operations.
4 Amend its articles of association and change the composition of the Boards of Directors and Commissioners.
5 Invest in or open new businesses. LMD obtained the following credit facilities from BCA:
a. Investment credit facility with a maximum amount of Rp160,000,000, which was fully drawn in 2007 and was paid in quarterly installments starting from 2007 until 2012. It was collateralized by
LMD’s trade receivables, investment properties, escrow accounts and restricted time deposits Notes 6, 13 and 14. Interest payments on the loan were collateralized by the restricted time
deposits in BCA Note 14. The outstanding loan balance as of December 31, 2011 and 2010 amounted to Rp81,999,607 and Rp106,999,607, respectively. In 2011 and 2010, LMD made
principal payments amounting to Rp25,000,000 and Rp20,000,000, respectively. This credit facility was fully paid on its maturity date.
b. Investment credit facility with a maximum amount of Rp350,000,000, which was fully drawn in 2011 and is payable in quarterly installments starting from 2013 until 2021 and is collateralized by
LMD’s trade receivables, investment properties and escrow accounts Notes 6, 13 and 14. As of June 30, 2013 and December 31, 2012 and 2011, the outstanding loan balance amounted to
Rp345,625,000, Rp350,000,000 and Rp326,848,796, respectively. For the six-month period ended June 30, 2013, LMD made the principal payments amounting to Rp4,375,000. No principal
payments were made by LMD in 2012.
Under the loan agreements with BCA above, LMD must comply with several covenants, including maintaining certain financial ratios, as follows:
1 Debt to equity ratio of not more than 2:1 as of June 30, 2013 and December 31, 2012 and 2011. 2 EBITDA to interest expense ratio of not less than 1.5:1 starting from 2013.
PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED
AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated
78
15. LOANS FROM BANKS AND FINANCING INSTITUTIONS continued PT Bank Central Asia Tbk BCA continued
On September 23, 2008, SHO obtained an investment credit facility from BCA with a maximum amount of Rp150,000,000 with grace period for loan drawdowns until March 31, 2010 which has been
extended to December 31, 2011. Based on the credit facility agreement, loan from the facility is payable in quarterly installments starting from 2012 until 2018 and is collateralized by the Company’s
investment properties Note 13 and letter of undertaking and SHO’s cash flows. As of June 30, 2013 and December 31, 2012 and 2011, the outstanding loan balance from this facility amounted to
Rp28,950,000, Rp33,500,000 and Rp40,000,000, respectively, while as of December 31, 2010 there was no outstanding loan balance from this facility. For the six-month period ended June 30, 2013 and
year ended December 31, 2012, SHO made principal payments amounting to Rp4,550,000 and Rp6,500,000, respectively.
SHO must obtain written approval from BCA prior to performing the following activities, among others: 1 Change the stockholders’ composition.
2 Obtain other facility or loan from other financial institution.
PT Bank Mandiri Persero Tbk Mandiri
The Company obtained several facilities from Mandiri as follows: a. Special purpose credit facility with a maximum amount of Rp200,000,000 obtained in 2010 which
was drawn in the amounts of Rp11,500,000, Rp79,710,000 and Rp108,790,000 in 2010, 2011 and 2012, respectively. The loan is payable in quarterly installments starting from September 23,
2012 until December 23, 2015. The outstanding loan balance as of June 30, 2013 and December 31, 2012, 2011 and 2010 amounted to Rp169,000,000, Rp189,000,000, Rp90,210,000 and
Rp11,500,000, respectively. For the six-month period ended June 30, 2013 and year ended December 31, 2012, the Company made principal payments totaling Rp20,000,000 and
Rp10,000,000, respectively.
The loans are collateralized by undeveloped land, fixed assets and escrow accounts Notes 10, 12 and 14.
b. Special purpose credit facility with a maximum amount of Rp600,000,000 obtained in 2013 which was drawn in the total amount of Rp410,000,000 until June 30, 2013. The loan is payable in
quarterly installments starting from December 2015 until March 2020. This loan is collateralized by building owned by JBA and investment properties owned by LMD. Both guarantees are cross
collateral and cross default with other credit facilities. The loan bore interest at the annual rate of 9 in 2013. The outstanding loan balance as of June 30, 2013 less unamortized provision
amounts to Rp407,000,000.
c. Overdraft facility with a maximum amount of Rp50,000,000 with credit period of one year. As of December 31, 2011, the outstanding loan balance from this facility amounted to Rp9,854,190. As
of December 31, 2012 and 2010 there were no outstanding loan balances from this facility. Under the loan agreements with Mandiri above, the Company generally must comply with several
covenants, including maintaining certain financial ratios as follows: 1 Debt to equity ratio of not more than 3:1 as of June 30, 2013 and December 31, 2012, 2011 and
2010. 2 EBITDA to interest expense ratio of not less than 2.5:1 as of June 30, 2013 and December 31,
2012, 2011 and 2010.
