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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43
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11. DERIVATIVE RECEIVABLES AND PAYABLES
As of December 31, 2002 and 2001, none of Bank Mandiri’s derivative transactions were designated as hedging instruments for accounting purposes. Accordingly, all gains and losses
resulting from these derivative transactions are recorded in the current year’s profit and loss. During the years ended December 31, 2002 and 2001, the period of derivative transactions ranged
from 3 - 1,675 days.
As of December 31, 2002, a summary of derivative transactions is as follows:
Transactions Notional
Amount Value
Derivative Derivative
Contract at
spot Receivables
Payables Note
2l Bank only
Non-related parties
Cross currency: 1.
Forward -
buy US
Dollar 119,541
116,798 127
2,870 Others
9,054 9,147
93 -
2. Forward -
sell US
Dollar 124,162
121,270 3,007
115 Others
9,052 9,147
- 95
3. Swap - buy US
Dollar 162,494
161,100 3
1,397 4. Swap - sell
US Dollar
1,089,051 801,024
288,967 940
Others Interest
Rate Swap
1,118,750 70,289
70,289 -
362,486 5,417
Subsidiaries Non-related parties
Foreign Currency: 1. Forward
- buy
US Dollar
75,144 77,459
2,462 147
2. Swap - buy US
Dollar 69,999
68,129 -
1,870 2,462
2,017 Total
364,948 Less: Allowance for possible losses
3,625 361,323
7,434
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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44
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11. DERIVATIVE RECEIVABLES AND PAYABLES Continued
Interest Rate Swap Bank Mandiri entered into an interest rate swap agreement with a notional amount of US125
million with Standard Chartered Bank, Singapore in August 2002. The underlying transaction is the Bank’s US125 million fixed interest subordinated loan issued in 2002 Note 30. Under the
transaction, the Bank receives semi-annual fixed interest at the rate of 10.625 per annum and pays semi-annual floating interest at the rate of LIBOR 6 months + 6.19 per annum for a 5-year
period. The LIBOR 6 months’ interest is stated in arrears. While the transaction is for the purpose of hedging the fixed rate coupon payments of the subordinated loan with floating coupon payment, it
does not qualify as a hedging transaction for accounting purposes.
Cross Currency Swap Bank Mandiri entered into a swap transaction forward contract with Deutsche Bank, Jakarta on
January 31, 2002. The contract was initiated when Bank Mandiri sold Government Bonds nominal Rp980,000 to Deutsche Bank at Rp735,000. The proceeds of the sales were used in a cross
currency swap contract. On the contract date, the Bank received US50,000,000 full amount and paid Rp735,000. The contract matures on January 31, 2004 and on settlement date, the Bank will
pay US50,000,000 full amount and receive Rp735,000. Bank Mandiri is then obliged to use the Rp735,000 it receives from Deutsche Bank to repurchase the Government Bonds it previously sold
to Deutsche Bank Notes 8 and 23.
As of December 31, 2001, a summary of derivative transactions is as follows:
Transactions Notional
Amount Value
Derivative Derivative
Contract at
spot Receivables
Payables Note
2l Bank only
Non-related parties Cross currency:
1. Forward - buy US Dollar
225,018 217,657
587 7,948
2. Forward - sell US
Dollar 78,502
77,257 1,807
562 3. Swap - buy
US Dollar
186,382 187,200
1,580 762
4. Swap - sell US
Dollar 186,469
187,200 834
1,565 4,808
10,837 Subsidiary
Related parties 1. Forward - buy
US Dollar
613 613
- -
Non-related parties Cross currency:
1. Forward - buy US
Dollar 146,762
147,849 1,774
687 2. Swap - buy
US Dollar
93,093 92,641
- 452
1,774 1,139
Total 6,582
11,976 Less: Allowance for possible losses
48 -
6,534 11,976
