PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
55
16. LONG-TERM BORROWINGS continued
a. Two-step loans continued
Principal Interest
Interest payment
payment rate
Lenders Currency
schedule period
per annum
Overseas banks US
Semi-annually Semi-annually 3.85
Rp Semi-annually Semi-annually
8.25 Yen
Semi-annually Semi-annually 2.95
The loans were intended for the development of telecommunications infrastructure and supporting telecommunications equipment. The loans are due on various dates through 2024.
The Company had used all facilities under the two-step loans program since 2008. Under the loan covenants, the Company is required to maintain financial ratios as follows:
a. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans origin
ating from Asian Development Bank “ADB”. b. Internal financing earnings before depreciation and finance costs should exceed 20
compared to annual average capital expenditures for loans originating from the ADB. As of June 30, 2016, the Company has complied with the above-mentioned ratios.
Refer to Note 32 for details of related party transactions. b. Bonds and notes
The breakdownn of bonds and notes is as follows:
June 30, 2016 December 31, 2015
Outstanding Outstanding
Original Original
currency Rupiah
currency Rupiah
Bonds and notes Currency in millions
equivalent in millions equivalent
Bonds 2010:
Series B Rp
- 1,995
- 1,995
2015: Series A
Rp -
2,200 -
2,200 Series B
Rp -
2,100 -
2,100 Series C
Rp -
1,200 -
1,200 Series D
Rp -
1,500 -
1,500 Medium Term Notes “MTN”
GSD Series A
Rp -
220 -
220 Series B
Rp -
120 -
120 Finnet
MTN I Rp
- 184
- 200
Promissory notes PT Huawei
US -
3 1
14 PT ZT
E Indonesia “ZTE” US
- 5
1 14
Total 9,527
9,563 Unamortized debt issuance cost
14 15
9,513 9,548
Current maturities Note 15b.i 38
49
Long-term portion 9,475
9,499
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
56
16. LONG-TERM BORROWINGS continued
b. Bonds and notes continued i. Bonds
2010
Interest Interest Listed
Issuance Maturity payment
rate Bonds
Principal Issuer
on date
date period 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 bond s are secured by all of the Company’s assets, movable or non
-movable, either existing or in the future Note 9c.x. The underwriters of the bonds are
PT Bahana Securities “Bahana” ,
PT Danareksa Sekuritas, and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk. The Company received the proceeds from the issuance of bonds on July 6, 2010.
The funds received from the public offering of bonds net of issuance costs, were used to finance capital expenditures which consisted of wave broadband bandwidth, softswitching, datacom,
information technology and others and infrastructure backbone, metro network, regional metro junction, internet protocol, and satellite system and to optimize legacy and supporting facilities
fixed wireline and wireless.
As of June 30, 2016, the rating of the bonds issued by PT Pemeringkat Efek Indonesia 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 5:1.
3. Debt service coverage is at least 125. As of June 30, 2016, the Company has complied with the above-mentioned ratios.
2015
Interest Interest
Listed Issuance
Maturity payment rate
Bonds Principal
Issuer on
date date
period per annum
Series A 2,200 The Company
IDX June 23, 2015 June 23, 2022 Quarterly
9.93 Series B
2,100 The Company IDX June 23, 2015 June 23, 2025
Quarterly 10.25
Series C 1,200 The Company
IDX June 23, 2015 June 23, 2030 Quarterly
10.60 Series D
1,500 The Company IDX June 23, 2015 June 23, 2045
Quarterly 11.00
Total 7,000
The bonds are secured by all of the Company’s assets, movable or non -movable, either existing
or in the future Note 9c.x. The underwriters of the bonds are Bahana, PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas and the trustee is Bank Permata.