PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 69
24. BANK LOANS continued
b. Citibank N.A
. continued 2. High Performance Backbone “HP Backbone” Loans continued
As of December 31, 2004 and 2005, the outstanding loan was US16.8 million Rp155,918 million and US12.6 million Rp123,665 million, respectively. The loan is
payable in ten semi-annual installments beginning in April 2004. Amounts drawn from the facility bear interest at a rate equal to the 6-month LIBOR plus
0.75 i.e., 2.97 and 5.04 as of December 31, 2004 and 2005, respectively.
b. On April 10, 2002, the Company entered into a loan agreement with Citibank N.A. as Arranger and Citibank International plc as Agent, which was supported by an export
credit guarantee obtained from Istituto per I Servizi Assicurativi del Commercio Estero
“SACE Italy”
providing a total maximum facility to US21.0 million. The facility was
used to finance up to 85 of material and services procured in Italy in connection with the design, manufacture, development, installation and testing of
Sub System VI,
as part of
HP Backbone
network. Amounts drawn from the facility bear fixed interest rate of 4.14. The loans are payable
in ten semi-annual installments beginning in December 2003. Total principal outstanding as of December 31, 2004 and 2005 was US13.0 million Rp120,809 million and US9.3
million Rp91,257 million, respectively.
During the period when the loans are outstanding, the Company is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. Debt service coverage ratio should exceed 1.5:1
2. Debt to equity ratio should not exceed:
a. 3:1 for the period of April 10, 2002 to January 1, 2003
b. 2.75:1 for the period of January 2, 2003 to January 1, 2004
c. 2.5:1 for the period of January 2, 2004 to January 1, 2005
d. 2:1 for the period of January 2, 2005 to the full repayment date of the loans
3. Debt to EBITDA ratio should not exceed:
a. 3.5:1 for the period of April 10, 2002 to January 1, 2004
b. 3:1 for the period of January 2, 2004 to the full repayment date of the loans
The Company has breached a covenant in the loan agreements which stipulates that the Company will not make any loans or grant any credit to or for the benefit of any person
which in aggregate exceed 3 of shareholders’ equity. As of May 12, 2006, the Company has obtained a written waiver from Citibank International plc with regard to providing
loans to certain subsidiaries which in aggregate exceed 3 of stockholders’ equity.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 70
24. BANK LOANS continued
