PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
60
19. TWO-STEP LOANS continued
June 30, 2014 December 31, 2013
Outstanding Outstanding
Original Original
currency Rupiah
currency Rupiah
Lenders Currency in millions
equivalent in millions equivalent
Overseas banks Yen
8,063 946
8,447 979
US 33
391 35
429 Rp
- 473
- 507
Total 1,810
1,915 Current maturities Note 18a
214 213
Long-term portion Note 18b 1,596
1,702
Interest Interest
Payment payment
rate Lenders
Currency schedule period
per annum
Overseas banks US
Semi-annually Semi-annually 4.00
Rp Semi-annually Semi-annually
6.79 Yen
Semi-annually Semi-annually 3.10
The loans are intended for the development of telecommunications infrastructure and supporting telecommunication equipment. The loans are payable in semi-annual installments and are due on
various dates through 2024. Since 2008, the Company has used all facilities under the two-step loans program and the drawdown
period for the two-step loans has expired.
The Company is required to maintain financial ratios as follows: a. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans
originating from the Asian Development Bank “ADB”. b. Internal financing earnings before depreciation and finance costs should exceed 20 compared
to annual average capital expenditures for loans originating from the ADB. As of December 31, 2014, the Company complied with the above-mentioned ratios.
Refer to Note 37 for details of related party transactions. 20. BONDS AND NOTES
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited
Figures in tables are expressedin billions of rupiah, unless otherwise stated
61
June 30, 2014 December 31, 2013
Outstanding Outstanding
Original Original
currency Rupiah
currency Rupiah
Bonds and notes Currency in millions
equivalent in millions equivalent
Bonds Series A
Rp -
1,005 -
1,005 Series B
Rp -
1,995 -
1,995 Promissory Notes
PT ZTE Indonesia “ZTE” US
9 106
11 136
PT Huawei US
7 83
18 213
Total 3,189
3,349 Current maturities Note 18a
147 276
Long-term portion Note 18b 3,042
3,073
a. Bonds
Interest Interest Listed
Issuance Maturity payment rate
Bonds Principal
Issuer on
date date
period per annum
Series A 1,005 The Company
IDX June 25, 2010 July 6, 2015 Quarterly
9.60 Series B
1,995 The Company IDX June 25, 2010 July 6, 2020
Quarterly 10.20
Total 3,000
a. Bonds continued The bonds are secured by all of the Company’s assets, movable or non-movable, either existing
or in the future Note 11c.x. The underwriters of the bonds are Bahana, PT Danareksa Sekuritas and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk.
The Company received the proceeds from the issuance of bonds on July 6, 2010. The funds received from the 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, 2013, the rating of the bonds issued by PT Pemeringkat Efek Indonesia Pefindo is idAAA stable outlook.
Based on the 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 June 30, 2014, the Company has complied with the above mentioned ratios.
