PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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46. COMMITMENTS AND CONTINGENCIES Continued
In 1996, the Bank BDN and Bank Exim and other syndicated banks entered into a syndicated loan agreement with PT Semen Bosowa Maros “SBM” to finance the construction of a cement factory.
The loan draw down was executed through usance letters of credit paid at sight “UPAS LC” which were opened and paid by PT Bank Negara Indonesia’46 “BNI” Singapore Branch. On October 12,
1997, Bank Mandiri “BDN”, as syndicated agent, issued a “Debit Authorization” authorizing BNI’46 Singapore to claim irrevocably and unconditionally the payment as the UPAS LCs mature.
Up to August 28, 2002 and as of December 31, 2001, the balance of UPAS LCs principal and interest opened and paid by BNI Singapore amounted to US271,394,176 full amount and
US261,896,075 full amount, or equivalent to Rp2,456,118 and Rp2,723,719, respectively, of which US68,574,959 full amount was due as of June 30, 2002. During the year, the Bank has paid all the
amount of the UPAS LCs issued by BNI Singapore, which included interest up to August 28, 2002 of US75,821,067 full amount. Effective August 28, 2002, the loan to SBM was restructured. The
restructured loan to SBM consists of the total credit limit as stated in Loan Agreement No. PK 44 of Rp526,275 with an exchange rate of Rp2,339 per US1 plus 63 of the total foreign currency loss
derived from the Agreement’s rate against the payment rate of Rp1,929,843. 37 of the foreign currency loss or equivalent to Rp715,584 was agreed to be borne by Bank Mandiri and Bank BNI
amounting to Rp447,240 and Rp268,344, respectively. The portions of each of the other syndicated banks upon restructuring of the loan are based on the portions stated on the original loan agreement.
The restructured loan portion of Bank Nusa and Bank Tugu of Rp23,390 and Rp11,695, respectively, were taken over by Bank Mandiri and Bank BNI with portions of 62.5 and 37.5, respectively.
After the loan restructuring, the Bank’s loan to SBM consists of the original credit limit of BDN and Bank Exim of Rp156,713 and Rp77,187, respectively; 62.5 of the SBM’s portion against the foreign
exchange loss and 62 of the Bank Nusa and Bank Tugu portions. In addition, the Bank also recorded a loss on foreign exchange differences of Rp447,240.
47. FOREIGN CURRENCY TRANSACTIONS
Effective January 1, 2001, forward and cross currency swap transactions are presented as derivatives receivables Note 11.
Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2002 are as follows:
Spot-Bought Spot-Sold
Foreign Currency Rupiah
Foreign Currency Rupiah
Original Currency full amount
Equivalent full amount
Equivalent United States Dollars
49,438,329 442,473
58,195,949 520,854
Other - 13,931
3,190 456,404
524,044
Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2001 are as follows:
Spot-Bought Spot-Sold
Foreign Currency Rupiah
Foreign Currency Rupiah
Original Currency full amount
Equivalent full amount
Equivalent United States Dollars
21,652,303 225,184
55,297,449 575,093
Other 71,787
33,618 296,971
608,711
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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47. FOREIGN CURRENCY TRANSACTIONS Continued
Interest Rate Swap Option BDN entered into an interest rate swap option agreement with Merrill Lynch Capital Services Inc. on
October 31, 1995 which generally involves the exchange of floating rate interest payment obligations without exchange of the underlying principal amounts. The agreement matures on November 11,
2002, subject to adjustment in accordance with the Modified Following Business Day Convention. There had been no actual exchange of cash flows between the counter-parties during the term of the
contract, however, Merrill Lynch had the option of receiving fixed rate interest payments from Bank Mandiri. The notional principal amount, which is used to express the volume of the transaction,
amounts to US180,000,000 full amount. The transaction relates to the FRNs issued by BDN amounting to US180,000,000 full amount Note 25.
The contract was terminated upon mutual agreement between Merrill Lynch and Bank Mandiri on March 9, 2001. Realized losses amounting to Rp23,868 were incurred by Bank Mandiri as a result of
the termination of the swap option agreement on March 9, 2001.
Cross Currency Swap BDN entered into a cross currency swap agreement with Merrill Lynch Capital Services Inc. on June
2, 1997 which provides for the exchange of US4,936,240 full amount with Rp12,000 on April 29, 2001, the maturity date of the agreement. The contract was terminated upon mutual agreement
between Merrill Lynch and Bank Mandiri on March 9, 2001. Realized gains amounting to Rp40,575 were earned by Bank Mandiri as a result of the termination of the cross currency swap agreement.
The transaction underlying this contract relates to the purchase of Medium Term Notes of PT Semen Gresik.
48. BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT
Bank Guarantees Received Bank guarantees received from other banks amounting to Rp1,299,216 and Rp1,262,660 as of
December 31, 2002 and 2001, respectively, are obtained from foreign banks to serve as collateral for loans, letters of credit or counter guarantees issued by Bank Mandiri.
Bank Guarantees Issued Bank guarantees issued consist of the following:
2002 2001
Issued on behalf of: PT Dirgantara Indonesia
209,717 103,124
PT Perusahaan Listrik Negara Persero 178,460
207,372 PT Pembangunan Perumahan Persero
174,719 68,724
PT Pelni 141,768
164,736 PT
Adhi Karya
129,840 143,057
PT Wijaya Karya 128,497
103,450 PT
Pelindo I
86,550 100,573
PT Gunanusa Utama Fabricator 64,960
44,953 PT Brantas Abipraya
58,884 55,442
PT Tripatra Engineers 20,577
- PT Telkomsel Persero
15,012 14,306
Others below Rp44,000 3,677,432
3,591,000 4,886,416 4,596,737
