PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
40
7. GOVERNMENT RECAPITALIZATION BONDS continued
2005 continued
Held to maturity
Interest Rates Maturity
Frequency of Nominal
per Annum Dates
Interest Payment Fixed rate bonds
1,350,000 13.15 03152010
6 months Variable rate bonds
59,744,598 3-month SBI
12252014- 3 months
07252020
61,094,598 2004
Trading
Interest Rates Maturity
Frequency of Nominal
per Annum Fair Value
Dates Interest Payment
Fixed rate bonds 208,068
13.15- 243,636
06152009- 6 months
15.43 12152013
Variable rate bonds 1,344,260
3-month SBI 1,336,198
11252005- 3 months
10252006
1,552,328 1,579,834
Available for sale Interest Rates
Maturity Frequency of
Nominal per Annum
Fair Value Dates
Interest Payment Fixed rate bonds
3,643,366 12.25-
4,455,242 07152007-
6 months 15.58
12152013 Variable rate bonds
24,387,072 3-month SBI
23,128,795 09252007-
3 months 07252020
28,030,438 27,584,037
Held to maturity Interest Rates
Maturity Frequency of
Nominal per Annum
Dates Interest Payment
Fixed rate bonds 1,350,000
13.15 03152010
6 months Variable rate bonds
59,744,598 3-month SBI
12252014- 3 months
07252020 Hedge bonds
2,711,595 SIBOR + 2
01252005- 3 months
06252005 Add: Increase in value of
indexation of hedge bonds 110,957
Hedge bonds after indexation 2,822,552
63,917,150
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
41
7. GOVERNMENT RECAPITALIZATION BONDS continued
Significant information relating to Government Recapitalization Bonds is as follows: 2005
As of December 31, 2005, Government Recapitalization Bonds with a total nominal amount of Rp2,084,796 had been sold to counterparties with agreements to repurchase Note 22.
Hedge bonds which matured in 2005 were settled by the Government of Republic of Indonesia with issuance of VR0031 series replacement bonds, with aggregate nominal value of Rp2,865,356.
The ownership of Government Recapitalization Bonds with an aggregate nominal value of Rp1,926,843 have been transferred to Deutsche Bank related with Callable Parallel Deposits Note 21 and Callable
Zero Coupon Deposits transactions. Because of significant risk and rewards of ownership of Government Recapitalization Bonds that have not been transferred to Deutsche Bank, the Bank still recognized
Government Recapitalization Bonds on its balance sheet.
The Bank has also entered in two callable zero coupon deposits transactions with Deutsche Bank related to transfer contract of Government of Republic of Indonesia Recapitalization Bonds. Such contract was
initiated when the Bank transferred Government of Republic of Indonesia Recapitalization Bonds to Deutsche Bank and received the fund from the proceeds in Rupiah. A portion of the total transfer
proceeds amounting to Rp974,666 was placed back as Callable Zero Coupon Deposits to Deutsche Bank. A summary of callable zero coupon deposit contract is as follows:
Effective Maturity
Beginning Ending
Effective Deposit
Date Date
Balance Balance
Interest Rate
Rupiah July 29, 2004
June 20, 2013 359,666
1,000,000 12.18
Rupiah April 8, 2005
December 20, 2013 615,000
1,514,470 10.90
The deposit was funded from a portion of fund received from transfer proceeds of Government of Republic of Indonesia Recapitalization Bonds to Deutsche Bank.
The interest rate of deposit above is the same with the yield of Government of Republic of Indonesia Recapitalization Bonds at the transfer date.
The agreement gives an option right to Deutsche Bank to early terminate the agreement by early terminationwithdrawal of the Rupiah deposit on any of the redemption date each year.
If trigger events occurs, which is the defaults or restructuring of FR0020 and FR0019 bonds by the Indonesian Government relating to the principal or interest payment, Deutsche Bank may opt to return the
FR0020 and FR0019 transferred bonds as a settlement for the callable zero coupon deposit transactions.
As the Bank has not sold and transferred the significant risk and rewards of the Government of Indonesia Recapitalization Bonds, Bank still recognized the deposits as Government of Indonesia Recapitalization
Bonds on the Bank’s balance sheet as of December 31, 2005.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
42
7. GOVERNMENT RECAPITALIZATION BONDS continued
