PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
39
7. GOVERNMENT RECAPITALIZATION BONDS continued
The details of Government Recapitalization Bonds are as follows: continued
2006 continued
Held to maturity
Interest Rates Maturity
Frequency of Nominal
per Annum Dates
Interest Payment Fixed rate bonds
1,350,000 13.15 03152010
6 months Variable rate bonds
59,744,598 3-month SBI
12252014- 3 months
07252020
61,094,598 2005
Trading
Interest Rates Maturity
Frequency of Nominal
per Annum Fair Value
Dates Interest Payment
Fixed rate bonds 803,106
12.25- 921,736
07152007- 6 months
14.28 12152013
Variable rate bonds 1,519,260
3-month SBI 1,514,043
11252005- 3 months
06252011
2,322,366 2,435,779
Available for sale Interest Rates
Maturity Frequency of
Nominal per Annum
Fair Value Dates
Interest Payment Fixed rate bonds
2,420,671 12.25-
2,818,565 07152007-
6 months 15.58
12152013 Variable rate bonds
27,247,428 3-month SBI
26,187,141 09252007-
3 months 07252020
29,668,099 29,005,706
Held to maturity Interest Rates
Maturity Frequency of
Nominal per Annum
Dates Interest Payment
Fixed rate bonds 1,350,000
13.15 03152010
6 months Variable rate bonds
59,744,598 3-month SBI
12252014- 3 months
07252020
61,094,598
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
40
7. GOVERNMENT RECAPITALIZATION BONDS continued
Significant information relating to Government Recapitalization Bonds is as follows: 2006
As of June 30, 2006, Government Recapitalization Bonds with a total nominal amount of Rp92,000 had been sold to counterparties with agreements to repurchase Note 22.
The ownership of Government Recapitalization Bonds with an aggregate nominal value of Rp1,926,843 have been transferred to Counterpart Bank related with Callable Parallel Deposits Note 21 and Callable
Zero Coupon Deposits transactions. Because of significant risk and rewards of ownership of Government Recapitalization Bonds that have not been transferred to Deutsche Bank, the Bank still recognized
Government Recapitalization Bonds on its balance sheet.
The Bank has also entered in two Callable Zero Coupon Deposits transaction with counterparty related to transfer contract of Government of Republic of Indonesia Recapitalization Bonds. Such contract was
initiated when the Bank transferred Government of Republic of Indonesia Recapitalization Bonds to counterparty and received the fund from the proceeds in Rupiah. A portion of the total transfer proceeds
amounting to Rp974,666 was placed back as Callable Zero Coupon Deposits to the counterparty bank. A summary of callable zero coupon deposit contract is as follows:
Effective Maturity
Beginning Ending
Effective Deposit
Date Date
Balance Balance
Interest Rate
Rupiah July 29, 2004
June 20, 2013 359,666
1,000,000 12.18
Rupiah April 8, 2005
December 20, 2013 615,000
1,514,470 10.90
The deposit was funded from a portion of fund received from transfer proceeds of Government of Republic of Indonesia Recapitalization Bonds to counterparty bank.
The interest rate of deposit above is the same with the yield of Government of Republic of Indonesia Recapitalization Bonds at the transfer date.
The agreement gives an option right to counterparty to early terminate the agreement by early terminationwithdrawal of the Rupiah deposit on any of the redemption date each year.
If trigger events occurs, which is the defaults or restructuring of FR0020 and FR0019 bonds by the Indonesian Government relating to the principal or interest payment, counterparty bank may opt to return
the FR0020 and FR0019 transferred bonds as a settlement for the callable zero coupon deposit transactions.
As the Bank has not sold and transferred the significant risk and rewards of the Government of Indonesia Recapitalization Bonds, Bank still recognized the deposits as Government of Indonesia Recapitalization
Bonds on the Bank’s balance sheet as of June 30, 2006.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
41
7. GOVERNMENT RECAPITALIZATION BONDS continued
