PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
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57. CUSTODIAL AND TRUST OPERATIONS
Custodial Operations Bank Mandiri has rendered custodial services starting in 1995 legacy banks: BDN, Bank Exim, BBD
and Bapindo. As a result of the merger, the operating license for custodial services was renewed and re-issued based on Bapepam Decision Letter No. KEP.01PMKstd1999 dated October 4, 1999. The
Custodial Services Business CSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides a full range of custodial services such as:
a. Settlement and handling services for scrip and scripless trading transactions. b. Registration of securities with Biro Administrasi Efek, and splitting and merging of securities.
c. Safekeeping and administration of securities and other valuable assets. d. Corporate action services related to the rights on the securities.
e. Proxy services for its customers’ shareholders’ meetings and obligation holders’ meetings. f. International services i.e. American Depository Receipts ADRs and Global Depository Receipts
GDRs, which are required by entities listed on the domestic and overseas exchanges dual listing.
g. Sub-registry services for settlement of transactions of Indonesian recapitalization bonds
“Government Recapitalization Bonds” as well as SBIs. h. Escrow agent.
i. As sub-custody agent for euroclear transactions. Bank Mandiri has 296, 238 and 269 custodial customers as of June 30, 2004 and 2003, and April 30,
2003, respectively. The customers are primarily pension funds, insurance companies, banks, securities and other private companies with a total portfolio value as of June 30, 2004 of Rp42,369,227
and US186,034,731 full amount. Bank Mandiri carries insurance on custodial services against safekeeping and transit loss under
blanket policies amounting to approximately Rp175,000. Management is of the opinion that the insurance coverage is adequate to cover possible losses from safekeeping and transit risks.
Trust Operations
Bank Mandiri had been rendering trustee services since 1983 legacy banks: Bank Exim, BDN, BBD and Bapindo. The operating license for trustee services was renewed and re-registered with
Bapepam as stipulated in No. 17STTD-WAPM1999 dated October 27, 1999. The Trustee Services Business TSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides
a full range of the following services: a. Preparing documentation support to bond issuers in complying with required documents for
issuance. b. Signing trustee agreements and other relevant documents together with bond issuers and other
related institutions. c. Monitoring performance of issuers and compliance against required documentation as stipulated
in trustee agreements on behalf of bondholders. d. Facilitating bondholder meetings and following up and executing the results of bondholder
meetings, as required. e. Providing information on issuers’ performance as requested by BAPEPAM or bondholders.
f. Managing the sinking fund and other collateral as required by a bond’s issuance and terms and conditions.
g. Paying agent for dividends and selected coupon payments. h. Escrow agent and security agent.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
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57. CUSTODIAL AND TRUST OPERATIONS continued
