PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
66
21. BONDS AND NOTES continued
b. MTN continued i. Metra
Proceeds from the issuance of MTN were used to expand the business and as working capital.
The MTN bear floating interest rates for the first year of 15.05 and 12.01 for the first and second phase, respectively. For the second and third years, interest rate for the first and
second phase is the average return yield of three Government Bonds “Surat Utang Negara” or SUN with a remaining period of time equal to the second and third years of MTN
plus a 4.02 premium. Repayment of the principal is in increments of 10, 20 and 70 on the first, second and third anniversary of the Issuance Date, respectively.
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.
Based on the agreements, Metra is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt to Equity maximum 1.5:1 2. EBITDA to Interest Ratio minimum 2.5.
As of September 30, 2011, Metra complied with the above mentioned ratios.
ii. Sigma Proceeds from the issuance of MTN were used to expand the business.
The MTN bear interest rates for the first year of 14.5 and for the second up to the fifth years from the Issuance Date based upon the average interest rate of one-month SBI plus a 800
basis points premium. One-month SBI is calculated based on the average interest rates of one-month SBI in the last 6 months at the time of the determination of the interest of MTN.
The MTN are not secured by a specific collateral, but secured by all of Sigma’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.
Based on the agreements, Sigma is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt to Equity maximum 2.5:1 2
Funded debt and maximum of five times EBITDA in 2009, three and a half times in 2010 and two and a half times in 2011.
As of September 30, 2011, Sigma complied with the above mentioned ratios.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated
67
21. BONDS AND NOTES continued
b. MTN continued iii. Finnet
Proceeds from issuance of MTN were used for the investment of hardware and software, project development and bridging loan payments for projects.
Repayment of principal for the first phase MTN are 1 each month on the 7
th
until 12
th
month, 2 each month on the 13
th
until 35
th
month, and the remaining 48 will be paid on November 17, 2012.
Repayment of principal for the second phase MTN are 2 each month on the following month until 35
th
month and the remaining 30 will be paid on March 24, 2013. The MTN bear interest rates of 16.25 per annum.
MTN are not secured by a specific collateral, but secured by all Finnet’s assets which are movable property or fixed property, either existing or in the future will become collateral for
MTN holders and at all times ranked pari passu without any preference with other Finnet’s creditor privileges in accordance with prevailing regulations. Finnet may buy back all or part
of the MTN at any time before the maturity date of the MTN.
Based on the agreements, Finnet is required to comply with all covenants or restrictions including maintaining financial ratio as follows:
1. Debt to Equity maximum 2.5:1 only if MTN is given by Finnet to third party 2. EBITDA to Interest Ratio minimum 2.5.
As of September 30, 2011, Finnet complied with the above mentioned ratios. Refer to Note 44 for details of related party transactions.
c. Promissory Notes
Interest Interest
Principal Issuance
Payment payment
rate Supplier
Currency in millions date
schedule method
per annum
PT. ZTE US
100 August 20, 2009
Semi-annually Semi-annually 6 month LIBOR+2.5 Indonesia
June 10, 2012 -
“ZTE”
February 11, 2014
PT Huawei Tech US
300 June 19, 2009
Semi-annually Semi-annually 6 month LIBOR+2.5 Investment
September 19, 2010 -
“Huawei Tech”
February 25, 2014
Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company with ZTE and Huawei Tech, the promissory notes issued by the Company to ZTE and
Huawei Tech is an unsecured supplier financing facility covered 85 of Hand Over Report “Berita Acara Serah Terima” or BAST projects with ZTE and Huawei Tech.
