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
b. Citibank N.A.
continued 3. EKN-Backed Facility
On December 2, 2002, pursuant to the partnership agreement with PT Ericsson Indonesia Note 50a.i, Telkomsel entered into the EKN-Backed Facility agreement Facility with
Citibank International plc as Original Lender and Agent and Citibank N.A., Jakarta branch as Arranger covering a total facility amount of US70.5 million which is divided into several
tranches.
The agreement was subsequently amended on December 17, 2004, to reduce the total Facility to US68.9 million.
The interest rate per annum on the Facility is determined based on the aggregate of the applicable margin, CIRR Commercial Interest Reference Rate and mandatory cost, if any
i.e., 4.02 and 4.02 as of December 31, 2004 and 2005, respectively. Interest is payable semi-annually, starting on the utilization date of the Facility July 31, 2003.
In addition to the interest, in 2004, Telkomsel was also charged an insurance premium for the insurance guarantee given by EKN in favor of Telkomsel for loan utilization amounting to
US1.5 million, 15 of which was paid in cash. The remaining balance was settled through utilization of the Facility.
The total amount drawn down from the Facility in 2004 and 2005 amounted to US47.3 million equivalent to Rp428,719 million and nil, respectively. As of December 31, 2004 and
2005, the outstanding balance was US56.1 million Rp521,470 million and US40.6 million Rp399,579 million, respectively.
The schedule of the principal payments on this long-term loan as of December 31, 2005 is as follows:
Amount US
Rupiah Year
in millions Equivalent
2006 15.5
152,202 2007
15.5 152,202
2008 9.6
95,175 40.6
399,579
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
- 71
24. BANK LOANS continued
b. Citibank N.A.
continued The following table summarizes the principal outstanding on loans from Citibank N.A. as of
December 31, 2004 and 2005:
Rupiah Rupiah Equivalent
Equivalent
Hermes Export Facility 649,758
427,718 HP Backbone loans
276,727 214,922
EKN-Backed Facility 521,470
399,579 Total
1,447,955 1,042,219
Current maturities 402,983
401,013 Long-term portion
1,044,972 641,206
in millions 2004
Foreign Currencies
in millions 2005
Foreign Currencies
EUR 36.7 EUR 51.4
US 29.8 US 56.1
US 40.6 US 21.9
c. Bank Central Asia
On April 10, 2002, the Company entered into a “Term Loan Agreement HP Backbone Sumatra Project” with Bank Central Asia, providing a total facility of Rp173,000 million. The facility was
obtained to finance the Rupiah portion of the high performance backbone network in Sumatra pursuant to the “Partnership Agreement”.
Amounts drawn from the facility bear interest at 4.35 plus the 3-month time deposit rate 10.02 and 13.27 as of December 31, 2004 and 2005, respectively. The loans are payable in twelve
unequal quarterly installments beginning in July 2004. The loan was originally scheduled to mature in October 2006 and was amended in 2004 to mature in April 2007.
Total principal outstanding as of December 31, 2004 and 2005 was Rp143,489 million and Rp86,093 million, respectively.
The loan facility from Bank Central Asia is not collateralized.
During the period when the loan is outstanding, the Company is required to comply with all covenants or restrictions including maintaining financial ratios as follows:
1. EBITDA to interest ratio should exceed 4:1
2. EBITDA to interest and principal ratio should exceed 1.5:1
3. Debt to EBITDA ratio should not exceed 3:1
The Company has breached a covenant in the loan agreement which stipulates that the Company will not make any loans to or for the benefit of any person which in aggregate exceed Rp500,000
million. As of April 24, 2006, the Company has obtained a written waiver from Bank Central Asia with regard to providing loans to certain subsidiaries which in aggregate exceed Rp500,000
million.
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
- 72
24. BANK LOANS
continued
d. Consortium of banks
On June 21, 2002, the Company entered into a loan agreement with a consortium of banks for a facility of Rp400,000 million to finance the Regional Division V Junction Project. Bank Bukopin,
acting as the facility agent, charged interest at the rate of 19.5 for the first year from the signing date and at the rate of the average 3-month deposit rate plus 4 for the remaining years. The
draw-down period expires 19 months from the signing of the loan agreement and the principal is payable in 14 quarterly installments starting from April 2004. The loan facility is secured by
project equipment, with a value of not less than Rp500,000 million.
Subsequently, based on an addendum to the loan agreement dated April 4, 2003, the loan facility was reduced to Rp150,000 million, the draw-down period was amended to expire 18 months from
the signing of the addendum, the repayment schedule was amended to 14 quarterly installments starting from May 21, 2004 and ending on June 21, 2007, and the value of the project equipment
secured was reduced to Rp187,500 million. As of December 31, 2004 and 2005, interest rate charged on the loan was 10.19 and 12.94,
respectively, and principal outstanding was Rp117,174 million and Rp74,890 million, respectively.
During the period when the loan is outstanding, 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 3:1
2. EBITDA to interest expense should exceed 5:1
As of December 31, 2005, the Company complied with the above mentioned ratios.
e. Bank Mandiri
On November 20, 2003, Dayamitra entered into a loan agreement with Bank Mandiri for a maximum facility of Rp39,925 million. As of December 31, 2003, the facility has been fully
drawn down. This facility is repayable on a quarterly basis until the fourth quarter of 2005 and bears interest at 14.5 per annum which is subject to change to reflect change in market rate
11.25 and 14 as of December 31, 2004 and 2005, respectively, and payable on a monthly basis. The loan is obtained to refinance Dayamitra’s payable to six contractors. As of December
31, 2004, principal outstanding under this facility was Rp27,925 million. On December 23, 2005, the loan was fully repaid and on January 4, 2006, the loan agreement was terminated.
