PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 64
24. BANK LOANS continued
b. Citibank N.A
. continued 2. High Performance Backbone “HP Backbone” Loans continued
As of June 30, 2005 and 2006, the outstanding loan was US14.7 million Rp143,146 million and US10.5 million Rp97,103 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 June 30, 2005 and 2006, 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 June 30, 2005 and 2006 was US11.1 million Rp108,673 million and US7.3
million Rp68,789 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 JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 65
24. BANK LOANS continued
