PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
63
19. TWO-STEP LOANS continued
Interest Interest
Payment payment
rate Lenders
Currency schedule period
per annum
Overseas banks US
Semi-annually Semi-annually 4.00
Rp Semi-annually Semi-annually
8.50 Yen
Semi-annually Semi-annually 3.10
The loans were intended for the development of telecommunications infrastructure and supporting telecommunications equipment. The loans are due on various dates through 2024.
Since 2008, the Company had used all facilities under the two-step loans program and the drawdown period for the two-step loans had expired.
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
originating 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 December 31, 2014, the Company has complied with the above-mentioned ratios.
Refer to Note 37 for details of related party transactions.
20. BONDS AND NOTES
2014 2013
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”
GSD Series A
Rp -
220 -
- Promissory Notes
PT Huawei US
4 52
18 213
PT ZTE Indonesia “ZTE” US
3 36
11 136
Total 3,308
3,349 Current maturities Note 18a
1,069 276
Long-term portion Note 18b 2,239
3,073
a. Bonds
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
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
64
20. BONDS AND NOTES continued
a. Bonds continued The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future Note 11c.x. The underwriters of the bonds are 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 increase
capital expenditures 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 to optimize legacy and supporting facilities fixed wireline and wireless.
As of December 31, 2014, 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 125. As of December 31, 2014, the Company has complied with the above mentioned ratios.
b. MTN
Interest Interest
Issuance Maturity
payment rate
Notes Currency Principal
date date
period per annum
GSD Series A
Rp 220 November 14, 2014 November 14, 2019 Semi-annually
11
Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of Medium Term Notes MTN PT Graha Sarana Duta year 2014 dated November 13, 2014 as
covered by notarial deed No. 30 of Arry Supratno, S.H., GSD will issue MTN with the principle amount up to Rp500 billion in series.
PT Mandiri Sekuritas act as the Arranger, Bank Mandiri as the Monitoring and Insurance Agent, and KSEI as Custodian. The Funds obtained from MTN are used for investment projects.
Trade receivables, inventories, land and building related with investment development funded by MTN that has owned or will be owned by GSD, have been pledged as collateral for MTN Notes 6,
7 and 11. According to the agreement, GSD is required to comply with all covenants or restrictions including
maintaining financial ratios as follows : 1. Debt to equity ratio should not exceed 6.5:1
2. EBITDA to interest ratio should not be less than 1.2:1 3. Minimum current ratio is 120
4. Maximum leverage ratio is 450 On December 31, 2014, GSD has complied with the above mentioned ratios.