PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
50
10. DERIVATIVE RECEIVABLES AND PAYABLES continued
Interest Rate Swaps continued 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 rate Subordinated Note issued in 2002 Note 29. 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 Note with floating coupon payments, it does not
qualify as a hedging transaction for accounting purposes.
Cross Currency Swaps Bank Mandiri has entered into cross currency swap contracts, which are associated with the securities
sale and repurchase agreements with several counterparty banks. The contract were initiated when Bank Mandiri sold its Government Recapitalization Bonds to the counterparty banks and received
Rupiah funds. These funds were used to settle the spot leg of the cross currency swaps and Bank Mandiri will then receive US Dollar funds. On the settlement date, the Bank will receive Rupiah funds
and pay US Dollar funds to the counterparty banks. Bank Mandiri is then obliged to use the Rupiah funds to repurchase the Government Recapitalization Bonds it previously sold to counterparty banks
Notes 7 and 22.
A summary of the cross currency swap contracts is as follows: Bank
Effective Maturity
Type of Sale
Buy counterpart
Date Date
Transactions full amount
full amount Standard Chartered
June 4, 2003 June 6, 2005 Spot
US100 million Rp1,037,500 million
Bank, Jakarta Forward
Rp1,037,500 million US100 million HSBC Bank,
Nov 3, 2004 Nov 3, 2009
Spot US25 million
Rp285,060 million Jakarta
Forward Rp285,060 million
US25 million Standard Chartered
Nov 4, 2004 Nov 4, 2009
Spot US25 million
Rp284,062 million Bank, Jakarta
Forward Rp284,062 million
US25 million As of December 31, 2003 a summary of derivative transactions is as follows:
Notional Amount Fair Value
Derivative Derivative
Transactions Contract
Note 2k Recievables
Payables Third Parties
Cross currency: 1. Forward - buy
US Dollar 156,024
154,543 1
1,482 Others
170,500 178,074
8,178 604
2. Forward - sell US Dollar
45,149 44,561
589 1
Others 31,602
32,194 518
1,110 3. Swap - buy
US Dollar 2,187,949
2,172,894 -
15,055 Others
52,125 51,952
- 173
4. Swap - sell US Dollar
4,879,016 3,888,550
990,466 -
Others 345,921
343,080 3,655
814 Others
Interest rate swap US Dollar
46,727 4,538
Total 1,050,134
23,777 Less: Allowance for possible losses
10,343 -
1,039,791 23,777
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
51
10. DERIVATIVE RECEIVABLES AND PAYABLES continued
