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
88
24. SECURITIES ISSUED continued
On October 31, 2003, Bank Syariah Mandiri, a subsidiary, issued five-year Syariah bonds amounting to Rp200,000 which mature on October 31, 2008. The profit sharing on such bonds is payable every
3 months with the first payment being made on January 30, 2004. The profit on sharing will be taken from the margin revenue of Bank Syariah Mandiri obtained from its quarterly Murabhahah portfolio.
Bank Mandiri launched a Debt Issuance Program of Medium-Term Notes MTNs for an aggregate amount of US1,000,000,000 full amount on April 21, 2003, through its Cayman Islands branch.
Under the program, subject to compliance with all relevant laws and regulations, the Bank is allowed to issue the MTNs from time to time. The aggregate amount of the outstanding MTNs issued is not
allowed to exceed US1,000,000,000 full amount or equivalent in other foreign currencies at any one time. MTNs may be Senior Notes or Subordinated Notes and may mature on various tenors
within one month to 30 years. The notes may be either bearer notes or registered notes and sold in minimum nominal amounts of US1,000 full amount and have registered serial numbers. The notes
may be sold and offered on a discounted rate basis with zero-coupon bonds or fixed rate, floating rate, dual currency note provision or index-linked, depending on the series offered. The MTNs issued
were not guaranteed through personal and corporate guarantees or assets guarantees provided by Bank Mandiri. The initial listing and trading of the notes was on the Singapore Stock Exchange.
During the first stage of the program, Bank Mandiri issued Senior Notes amounting to US300,000,000 full amount at 99.482 of nominal value with a coupon of 7.00 per annum and
which mature on April 22, 2008. The US300 million MTNs are hedged with an interest rate swap instrument. The MTNs are recognized at their fair value as adjusted by the hedging transaction,
which fair value adjustment as of December 31, 2004 and 2003, and April 30,2003 decreased by US2,607,975 full amount or equivalent to Rp24,215, and US538,610 full amount or equivalent
to Rp4,538 and increased by US2,993,466 full amount or equivalent to Rp25,970, respectively Note 10.
On December 15, 2004, Bank Mandiri exercised the call option for its FRNs Eurobond amounting to 125,000,000 full amount.
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
89
25. FUND BORROWINGS
December 31, December 31,
April 30, 2004
2003 2003
Rupiah: Bank Indonesia a
943,089 1,199,492
1,378,444 Bank Ekspor Indonesia b
313,528 908,929
1,706,449 PT Permodalan Nasional Madani Persero d
414,011 359,254
236,438 Others f
316,378 150,000
- 1,987,006
2,617,675 3,321,331
Foreign Currency: Bank Ekspor Indonesia b
903,310 1,296,290
840,640 Exchange Offer Loans c
1,690,799 4,362,486
8,053,380 Direct Offshore Loans e
529,245 252,750
260,265 Others f
1,956,133 5,968
182,663 5,079,487
5,917,494 9,336,948
7,066,493 8,535,169
12,658,279
As of December 31, 2004 and 2003, and April 30, 2003, fund borrowings from related parties amounted to Rp126,378, RpNil and RpNil, respectively.
a Bank Indonesia This account represents a credit liquidity facility obtained from Bank Indonesia BI, which was
re-loaned to Bank Mandiri customers under the Government Credit Program. The management and monitoring of the credit facility are performed by PT Permodalan Nasional Madani
Persero, a state-owned company, based on Law No. 231999 dated May 17, 1999 regarding BI, BI Regulation No. 23PBI2000 dated February 1, 2000 and BI Regulation No. 520PBI2003
dated September 17, 2003 regarding the Hand-over of Management of Credit Liquidity of Bank Indonesia Under Credit Program. This facility is subject to interest at rates ranging from 3 to
10 per annum and will mature on various dates through 2017. The details of this account are as follows:
December 31, December 31,
April 30, 2004
2003 2003
Rupiah: Investment Loans KI
155,811 303,917
444,770 Small-Scale Working Capital Loans KUK - KKPA
520,650 514,679
525,871 Small-Scale Investment Loans KIK
266,628 380,846
407,753 Working Capital Loans KMK
- 50
50
943,089 1,199,492
1,378,444
b Bank Ekspor Indonesia This account represents credit facilities for export working capital obtained from Bank Ekspor
Indonesia based on the facility agreement No. 064PPF122000 dated December 12, 2000 between PT Bank Ekspor Indonesia Persero and PT Bank Mandiri Persero. The agreement
was for the period from December 20, 2000 until December 19, 2001, and was extended with new agreement No. 062PPF122004 to December 16, 2005. The facilities were re-loaned to
direct and indirect exporter customers of Bank Mandiri and bear interest at market rates.
