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
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23. NOTES AND BONDS continued
b. Medium-term Notes
continued The Notes consist of four Series with the following maturities and interest rates:
Series Principal
Maturity Interest rate
A 290,000
June 15, 2005 7.70
B 225,000
December 15, 2005 7.95
C 145,000
June 15, 2006 8.20
D 465,000
June 15, 2007 9.40
Total 1,125,000
Interest on the Notes is payable semi-annually beginning June 15, 2005 through June 15, 2007. The Notes are unsecured and will at all times rank
pari passu
with other unsecured debts of the Company. The Company may at any time, before the maturity dates of the Notes, repurchase the
Notes in whole or in part. On June 15, 2005 and December 15, 2005, the Company repaid the Series A and Series B Notes.
As of December 31, 2004 and 2005, the outstanding principal and unamortized debt issuance costs are as follows:
2004 2005
Principal 1,080,000
610,000 Debt issuance costs
2,297 671
1,077,703 609,329
Current maturities 468,976
144,510 Long-term portion
608,727 464,819
As of December 31, 2005, the rating for the Notes issued by Pefindo is AAA. During the period when the Notes are outstanding, the Company should 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 2:1
3. Debt to EBITDA ratio should not exceed 3:1
As of December 31, 2005, the Company complied with the covenants.
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
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23. NOTES AND BONDS continued
c. Guaranteed Notes
In April 2002, TSFL, Telkomsels wholly-owned subsidiary, issued US150.0 million Guaranteed Notes the “Notes” which are unconditionally and irrevocably guaranteed by Telkomsel. The
Notes bear interest at 9.75, payable semi-annually on April 30 and October 30 of each year and will mature on April 30, 2007. The trustee of the Notes is Deutsche Bank Trustees Hong Kong
Limited and the custodian is Deutsche Bank AG, Hong Kong Branch.
Telkomsel has unconditionally and irrevocably guaranteed the payment of all sums from time to time payable by the Issuer in respect of the Notes. So long as any Notes remains outstanding,
among others, neither the Issuer nor the Guarantor will create or permit to subsist any mortgage, charge, pledge, lien or other form of encumbrance or security interest including without limitation
anything analogous to any of the foregoing under the laws of any jurisdiction each a “Security Interest” on the whole or any part of its present or future assets, undertakings, property or
revenues as security for any other indebtedness or any guarantee of or indemnity in respect of any other indebtedness.
TSFL may, on the interest payment date falling on or about the third anniversary of the issue date redeem the Notes, in whole or in part, at 102.50 of the principal amount of such Notes, together
with interest accrued to the date fixed for redemption, provided that if only part of the Notes are redeemed, the principal amount of the outstanding Notes after such redemption will be at least
US100.0 million.
The Notes are listed on the Singapore Exchange Securities Trading Limited. The Notes will constitute direct, unconditional, unsubordinated and unsecured obligations of TSFL and will at all
times rank
pari passu
and without any preference among themselves. The payment obligations of TSFL under the Notes shall, save for such exceptions as may be provided by applicable laws, at all
times rank at least equivalent with all other present and future unsecured and unsubordinated obligations of TSFL. The net proceeds from the sale of the Notes were used by TSFL to lend to
Telkomsel in financing its capital expenditures.
Based on the “On-Loan Agreement”, dated April 30, 2002 between Telkomsel and TSFL, TSFL lent the proceeds from the subscription of the Notes to Telkomsel at an interest rate of 9.765 per
annum, payable under the same terms as above. Subsequently, on September 8, 2003, the agreement was amended such that if any Notes are cancelled, the principal amount of the
outstanding loan will be reduced by the principal amount of the Notes cancelled. The loan will mature on April 30, 2007 or on such an earlier date as the loan may become repayable.
On February 8, 2005, the inter-company loan agreement, together with its rights, benefits and outstanding obligations was transferred from TSFL to TFBV, another wholly owned subsidiary of
Telkomsel. In conjunction with this transfer, Telkomsel’s liability of US79.4 million under the loan from TSFL was transferred to TFBV, with terms and conditions similar to those of the
original Notes. Subsequently, TFBV lent to Telkomsel an additional US0.8 million at a rate of 9.77 per annum plus a margin of 0.15, payable under similar terms as above.
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
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23. NOTES AND BONDS continued
