NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010
Figures in tables are presented in billions of Rupiah, unless otherwise stated
56
19. BONDS AND NOTES continued
a. Bonds continued The funds received from public offering of bonds net of issuance costs, are to be used for
increasing capital expenditure 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 optimizing legacy and supporting facilities fixed wireline and wireless.
As of December 31, 2011, the rating for the bonds issued by PT Pemeringkat Efek Indonesia Pefindo is idAAA stable outlook.
Based on 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, 2011, the Company complied with the above mentioned ratios. b. MTN
Interest Issuance
Maturity payment
Notes Principal
date date
method
MTN Metra I
Phase 1 30
June 9, 2009 June 19, 2012
Quarterly Phase 2
20 February 1, 2010
February 2, 2013 Quarterly
Metra II Phase 1
20 December 28, 2011
December 28, 2014 Quarterly
Sigma 30
November 17, 2009 November 17,2014
Semi-annually Finnet
Phase 1 10
October 16, 2009 November 17, 2012
Monthly Phase 2
15 March 18, 2010
March 24, 2013 Monthly
The Arranger of the Medium Term Notes is PT Bahana Securities, Bank Mega is acting as Trustee, and PT Kustodian Sentral Efek Indonesia “KSEI” is acting as Collecting Agent and
Custodian. Proceeds from the issuance of MTN among others were used to expand the business and as working capital.
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.
The MTN of Sigma and Finnet are not secured by a specific collateral, but secured by all of Sigma and Finnet’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. Sigma and Finnet may
buyback all or part of the MTN at any time before the maturity date of MTN.
Based on the agreements, Metra, Sigma, and Finnet are required to comply with required covenants including maintaining financial ratios. As of December 31, 2011, Metra, Sigma, and
Finnet complied with the ratios.
Refer to Note 37 for details of related party transactions.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
continued
DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010
Figures in tables are presented in billions of Rupiah, unless otherwise stated
57
19. BONDS AND NOTES continued
c. Promissory Notes
Interest Interest
Principal Issuance
Payment payment
rate Supplier
Currency in billions
date schedule
method per annum
PT Huawei Tech US
0.3 June 19, 2009
Semi-annually Semi-annually 6 month LIBOR+2.5
Investment
January 11, 2012 -
“Huawei Tech”
June 23, 2014
PT. ZTE US
0.1 August 20, 2009
Semi-annually Semi-annually 6 month LIBOR+1.5
Indonesia
June 10, 2012 -
6 month LIBOR+2.5 “ZTE”
June 10, 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 are unsecured supplier financing facilities covering 85 of Hand Over Report “Berita Acara Serah Terima” or BAST projects with ZTE and Huawei Tech.
20. BANK LOANS
2011 2010
Outstanding Outstanding
Original Original
currency Rupiah
currency Rupiah
Lenders Currency
in millions equivalent
in millions equivalent
Syndication of banks Rp.
- 3,225
- 4,500
BCA Rp.
- 2,271
- 2,755
Bank Mandiri Rp.
- 2,111
- 3,075
BRI Rp.
- 1,131
- 822
ABN Amro Bank N.V. Stockholm Branch “AAB
Stockholm” and Standard Chartered Bank
US 85
771 54
487 BNI
Rp. -
400 -
1,150 Japan Bank for International
Cooperation “JBIC” US
42 381
54 486
Industrial and Commercial Bank of China Limited
“ICBC” US
39 350
46 417
OCBC NISP Rp.
- 466
- 622
Bank CIMB Niaga Rp.
- 81
- 24
PT Bank Ekonomi Raharja Tbk “Bank Ekonomi”
Rp. -
69 -
79 US
4 -
Bank of China “BoC” US
- -
18 159
Finnish Export Credit Ltd US
- -
17 149
The Export-Import Bank of Korea “Korea Eximbank”
US -
- 12
106 Others
Rp. -
1 -
8 Total
11,261 14,839
Unamortized debt issue cost 70
105 11,191
14,734 Current maturities Note 17a
3,960 4,478
Long-term portion Note 17b
7,231 10,256
Refer to Note 37 for details of related party transactions.