PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
13
1. GENERAL continued
c. Recapitalization
continued Based on Bank Indonesia Letter No. 11GBIDPIP dated October 11, 1999, concerning the issuance of
Government BondsDebentures in connection with the Government of the Republic of Indonesia’s investment in Bank Mandiri, Bank Indonesia agreed that the above receivable be included in Bank
Mandiri’s core capital “Tier 1” for purposes of calculating its capital adequacy ratio CAR as of July 31, 1999 through September 30, 1999, subject to the condition that not later than October 15, 1999
the Government BondsDebentures should have been received by Bank Indonesia.
Based on Government Regulation No. 97 of 1999 dated December 24, 1999 concerning the increase in capital of the Government of the Republic of Indonesia in Bank Mandiri within the framework of the
Recapitalization Program, the Government of the Republic of Indonesia increased its investment to a maximum of Rp42,200,000, such that the total maximum investment would amount to Rp180,000,000.
In connection with the implementation of the above Government Regulations No. 52 and No. 97 of 1999, in accordance with the Interim Recapitalization Agreement between the Government and Bank
Mandiri and its amendment, the Government issued Government Recapitalization Bonds “Recap Bonds” in two tranches of Rp103,000,000 on October 13, 1999 and Rp75,000,000 on December 28,
1999 Note 7 so that as of December 31, 1999 the total Recapitalization Bonds issued in accordance with the aforementioned Agreements amounted to Rp178,000,000.
Based on the Management Contract dated April 8, 2000, between Bank Mandiri and the Government, the total amount of recapitalization required by Bank Mandiri was Rp173,931,000, or less than the
amount of the Recapitalization Bonds. Of such excess, Rp1,412,000 is to be retained as additional paid-in capital, and the balance of Rp2,657,000 was returned to the Government on July 7, 2000 in the
form of Recapitalization Bonds equivalent to 2,657,000 two million six hundred and fifty seven thousand units.
Based on the decision letter of the Minister of Finance No. S-174MK.012003 dated April 24, 2003 regarding the return of the excess Government Recapitalization Bonds, which was previously retained
as additional paid-in capital, Government Recapitalization Bonds amounting to Rp1,412,000 were returned to the Government on April 25, 2003 Note 32b.
On May 23, 2003, the Minister of Finance issued decrees KMK-RI No. 227KMK.022003 and No. 420KMK-022003 dated September 30, 2003 confirming among others the final amount of the
Government’s participation in Bank Mandiri in the amount of Rp173,801,315 Note 32b.
d. Initial Public Offering of the Bank’s Shares Bank Mandiri submitted its registration for an Initial Public Offering IPO to the Capital Market
Supervisory Board Bapepam on June 2, 2003. The Registration Statement became effective based on the decision letter of the Chairman of Bapepam No. S-1551PM2003 dated June 27, 2003.
On July 14, 2003, Bank Mandiri made an IPO of its 4,000,000,000 shares, with a nominal value of Rp500 full amount per share with an initial selling price of Rp675 full amount per share. The offering of
4,000,000,000 shares of the Bank represents a divestment of 20 of the ownership of the Government of the Republic of Indonesia in Bank Mandiri Note 32a.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
14
1. GENERAL continued
