MARKETABLE SECURITIES ISSUED continued Bonds continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 141

30. MARKETABLE SECURITIES ISSUED continued Subordinated notes sharia mudharabah continued

- Nisbah provided to the BSM subnotes holders’ is 16.30 per annum of the profit sharing which is paid every three 3 months. The issuance of BSM Subnotes divided into three 3 phases: - Phase I dated December 19, 2011 with nominal amount of Rp75,000. - Phase II dated December 19, 2011 with nominal amount of Rp275,000. - Phase III dated December 19, 2011 with nominal amount of Rp150,000. Subnotes are neither covered by a specific collateral nor guaranteed by a third party or by the Republic of Indonesia and not included in the Bank Guarantee Program implemented by Bank Indonesia or other guarantee institution in accordance to with the law and regulation in force. Subnotes are obligation of the BSM that is subordinated. During the validity period of Subnotes, and before the redemption of all of principal and profit sharing, the BSM is obliged to: i maintain the amount of assets that are not pledged at a minimum of 150 of total liabilities; ii ensure that subnotes not owned by more than 49 forty-nine investors; iii submit to the monitoring agent financial information as follows: annual audited financial statements, quarterly financial statements and the financial statements used for the calculation of profit sharing and BSM health rating reports issued by Bank Indonesia. Without written approval from the monitoring agent, BSM is not allowed to do the following: i reduce the issued and paid-in capital; ii make some changes in business field; iii do a merger or consolidation or reorganization, except if there was some regulation from the Government or Bank Indonesia; iv do a merger, consolidation, acquisition with another entity that will result to the dissolution of BSM. The trustees of BSM’s subnotes mudharabah year 2011 are PT Bank Mandiri Persero Tbk. and PT Bank CIMB Niaga Tbk. As of December 31, 2015, the rating of BSM subnotes mudharabah year 2011 based on Pefindo’s rating is idAA double A. On December 19, 2016, BSM has executed its call option right of the subnotes mudharabah year 2011 subnotes BSM amounting to Rp500,000. Medium Term Notes MTN To assist with business expansion, mainly in order to support credit financing, on November 18, 2016, the Subsidiary PT Bank Mandiri Taspen Pos “ Bank Mantap ” issued Medium-Term Notes MTN PT Bank Mandiri Taspen Pos “ MTN Bank Mantap ” amounting to Rp350,000 with an interest rate of 9.50 per annum. MTN Bank Mantap has a period of 370 days from the date of issuance, while the interest is payable on a quarterly basis with the first interest payment due on February 18, 2017. December 31, 2016 Interest Maturity Tenor rate Type Arranger date days per annum Nominal amount MTN Bank Mantap PT Mandiri Sekuritas November 28, 2017 370 9.50 350,000 On December 31, 2016, the rating of MTN Bank Mantap Based on Pefindo’s Rating is idA + A plus. Bank Mandiri and its Subsidiaries have made interest payments on securities issued in accordance with the schedule of interest payments during the years ended December 31, 2016 and 2015. During the years ended December 31, 2016 and 2015, Bank Mandiri and Subsidiaries have fulfilled the requirements stipulated in the agreement of all issued securities. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 142

31. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES

a. Transactions of commitments and contingencies in the ordinary course of business of Bank Mandiri and its Subsidiaries activities that have credit risk are as follows: December 31, December 31, 2016 2015 Rupiah: Bank guarantees issued Note 53 42,070,997 37,077,825 Committed unused loan facilities granted 20,843,506 22,273,685 Outstanding irrevocable letters of credit Note 53 3,263,998 2,426,922 Standby letters of credit Note 53 1,868,480 1,970,917 Total 68,046,981 63,749,349 Foreign currencies: Bank guarantees issued Note 53 32,195,287 37,433,266 Committed unused loan facilities granted 6,053,865 7,006,333 Outstanding irrevocable letters of credit Note 53 8,832,668 8,497,666 Standby letters of credit Note 53 11,296,080 10,764,808 Total 58,377,900 63,702,073 126,424,881 127,451,422 b. By Bank Indonesia’s collectibility: December 31, December 31, 2016 2015 Current 125,828,356 126,481,063 Special mention 511,293 685,904 Sub-standard 60,493 230,090 Doubtful 13,468 16,541 Loss 11,271 37,824 Total 126,424,881 127,451,422 Less: Allowance for impairment losses 207,401 395,610 Commitments and contingencies - net 126,217,480 127,055,812 c. Movements of allowance for impairment losses on commitments and contingencies: December 31, December 31, 2016 2015 Beginning balance 395,610 196,793 Reversalallowance during the year 181,459 198,450 Others 6,750 367 Ending balance 207,401 395,610 Includes effect of foreign currencies translation. Management believes that the allowance for impairment losses on commitments and contingencies is adequate.