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
76
24. SECURITIES ISSUED continued
On October 31, 2003, Bank Syariah Mandiri, a subsidiary, issued five-year Syariah bonds amounting to Rp200,000 which mature on October 31, 2008. The profit sharing on such bonds is payable every 3
months with the first payment being made on January 30, 2004. The profit on sharing will be taken from the margin revenue of Bank Syariah Mandiri obtained from its quarterly murabhahah portfolio.
Bank Mandiri issued Senior Notes amounting to US300,000,000 full amount at 99.482 of nominal value with a coupon of 7.00 per annum, which mature on April 22, 2008. The US300 million MTNs are
hedged with an interest rate swap instrument. The MTNs are recognized at their fair value as adjusted by the hedging transaction, which fair value adjustment as of December 31, 2005 and 2004 decreased by
Rp86,039 or equivalent to US8,752,736 full amount and Rp24,215 or equivalent to US2,607,975 full amount, respectively.
On December 15, 2004, Bank Mandiri exercised the call option for its BDN FRNs Eurobond amounting to US17,000,000 full amount.
25. FUND BORROWINGS
2005 2004
Rupiah: Bank Indonesia a
735,004 943,089
PT Permodalan Nasional Madani Persero b 573,722
414,011 PT Bank Ekspor Indonesia Persero d
667,400 313,528
The Government of Republic of Indonesia c Note 48 350,000
- Others h Note 48
305,000 316,378
2,631,126 1,987,006
Foreign Currency: Trade Financing Facilities e
196,600 1,949,968
Direct Off-shore Loans f 1,445,010
529,245 PT Bank Ekspor Indonesia Persero d
- 903,310
Exchange Offer Loans g -
1,690,799 Others
h 6,895 6,165
1,648,505 5,079,487
4,279,631 7,066,493
As of December 31, 2005 and 2004, fund borrowings from related parties amounted to Rp350,000 and Rp126,378, respectively.
a Bank Indonesia
This account represents a credit liquidity facility obtained from Bank Indonesia BI, which was re- loaned to Bank Mandiri customers under the Government Credit Program. The management and
monitoring of the credit facility are performed by PT Permodalan Nasional Madani Persero, a state- owned company, based on Law No. 231999 dated May 17, 1999 regarding BI, BI Regulation No.
23PBI2000 dated February 1, 2000 and BI Regulation No. 520PBI2003 dated September 17, 2003 regarding the Hand-over of Management of Credit Liquidity of Bank Indonesia Under Credit
Program. This facility is subject to interest at rates ranging from 3 to 9 per annum and will mature on various dates through 2017. The details of this account are as follows:
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
77
25. FUND BORROWINGS continued
a Bank Indonesia
continued
2005 2004
Rupiah: Small-Scale Working Capital Loans KKPA
420,571 520,650
Small-Scale Investment Loans KIK 188,738
266,628 Investment Loans KI
125,695 155,811
735,004 943,089
b PT Permodalan Nasional Madani Persero This account represents credit facilities obtained from PT Permodalan Nasional Madani Persero,
which borrowings were re-loaned by Bank Mandiri to the members of the Primary Cooperative Kredit Koperasi Primer kepada Anggotanya [KKPA]. These facilities are subject to interest at 7
per annum. The loan terms and installment payments schedule reflect the terms of the individual loan agreements.
c The Government of Republic of Indonesia This account represents credit facilities obtained from The Government of Republic of Indonesia
based on agreement No. KP-022DP32004 dated May 14, 2004 which was amended with agreement No. AMA-7KP-022DP32004 dated December 15, 2004 and letter No.5-662PB.72005
dated May 13, 2005 regarding amandment of loan agreement between The Government of Republic of Indonesia and PT Bank Mandiri Persero Tbk No. KP-022DP32004 dated May 14, 2004. This
borrowing is re-loaned by Bank Mandiri to the small and micro businesses which procedures, arrangements and requirements of the relending program are agreed with the Decision Letter of
Ministry of Finance No. 40KMK.062003 dated January 29, 2003 regarding Credit Financing Facilities for Small and Micro Businesses and amended with Decision Letter of Ministry of Finance
No. 74KMK.062004 dated February 20, 2004. This facility bears interest at 3-month SBI rate which will be determined every four months at March 10, June, 10 September 10 and December 10 based
on the latest SBI auction rate. The repayment of the borrowing will be made in five 5 installments and the first installment will be due on December 10, 2007.
d PT Bank Ekspor Indonesia Persero This account represents credit facilities for export working capital obtained from Bank Ekspor
Indonesia based on the facility agreement No. 064PPF122000 dated December 12, 2000 between PT Bank Ekspor Indonesia Persero and PT Bank Mandiri Persero Tbk. The agreement was for the
period from December 20, 2000 until December 19, 2001, and was extended annually with the latest agreement No. 054PPF122005 to December 16, 2006. The facilities were re-loaned to direct and
indirect exporter customers of Bank Mandiri and bear interest at market rates.
