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
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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48. BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT Continued
Bank Guarantees Issued Continued Bank Mandiri has not issued any bank guarantees to related parties in 2002 and 2001.
The bank guarantees issued on behalf of PT Dirgantara Indonesia DI mostly represent Advance Payment Bank Guarantees and Performance Bonds. The bank guarantees were issued to guarantee
the advances paid by the South Korea Ministry of Defense of US7,630,000 for the purchase of two aeroplanes VIP and VVIP Aircraft, and advances paid by the Pakistan Air Force PAF of
US9,912,860 full amount for the purchase of four CN325 aeroplanes. The Performance Bond Issued by the Bank on behalf of DI amounted to US545,000 full amount. The two aeroplanes VIP
Conversion Aircraft No. 7 and VVIP Conversion Aircraft No. 8 were delivered on December 26, 2002. The related guarantees in the form of Perfomance Bonds continue to be valid until 365 days after the
date of shipment, and 180 days after the shipment for the Advance Payment Guarantee. The bank guarantees issued on behalf of PT Perusahaan Listrik Negara “PLN” Persero were to
facilitate risk-sharing agreements with PT Bank BNI Persero for PT Perusahaan Listrik Negara “PLN” Persero project, for construction of buildings and harbours, for the manufacturing of
chemicals, and others. The bank guarantees are given for periods ranging from 3 three months to 3 three years.
The bank guarantees issued on behalf of PT Pembangunan Perumahan Persero represent various types of bank guarantees such as bid guarantees, performance guarantees, advance
payment guarantees, etc., for various construction projects. The construction projects were from various parties both from private and government sectors. The projects include building
construction, road construction, bridge construction, etc. On March 6, 2001, the Bank issued a Counter Guarantee on behalf of PT. Pelayaran Nasional
Indonesia “PELNI” amounting to US15,840,000 full amount to Den Norske Bank - Bergen, Norway. The Bank guarantee was issued to counter the bank guarantee issued by Den Norske
Bank for the beneficiary Debis Financial Services. The bank guarantee was to guarantee the payment for the ship leased by PELNI. The bank guarantee issued by Den Norske Bank is
collateralized by a placement of PT Bank Mandiri in Den Norske Bank amounting to Rp141,768 Note 6.f
The bank guarantee issued on behalf of PT Adhi Karya represent Bid Bond Guarantees, Performance Bond and Advance Payment Guarantees to support various construction projects.
Most of the projects were obtained from the Government. The Projects include road construction, building construction and bridge construction.
The bank guarantees issued on behalf of PT Wijaya Karya represent Bid Bond Guarantees, Performance Bond and Advance Payment Guarantees to support the construction projects won by
that company. Most of the projects were obtained by the company from the Government. A counter guarantee amounting to US285,895 full amount or equivalent to Rp2,559 as of
December 31, 2002 was issued to counter a bank guarantee issued by another bank. The bank guarantee issued by the other bank is collateralized by the balance of Bank Mandiri current account
for the amount of US286,914 full amount or equivalent to Rp2,568 and Rp2,960 as of December 31, 2002 and 2001, respectively Note 5.f.
