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
115
32. LOAN CAPITAL continued
The Zero Coupon Bonds bear compound interest such that, after 15 years, the maturity value of the Zero Coupon Bonds would amount to US135,000,000 full amount thereby enabling Badaneg to fulfill its
obligations under the Deferred Sale Agreement. The terms and conditions of the BDN SUFRNs provide for redemption of their aggregate nominal
value upon the occurrence of several events including mandatory redemption if the Republic of Indonesia ceases directly to own at least 51 of the issued voting share capital of Bank Mandiri.
If Bank Mandiri was required to redeem the BDN SUFRNs prior to the interest payment date falling in November 2005 and to make repayment in full then, pursuant to the terms of a Collateral Agreement
dated November 26, 1990 between BDN, acting through its Cayman Islands Branch, Badaneg and STL Investment Panama S.A., Badaneg is, subject to the prior discharge by Badaneg of its
obligations to STB Leasing Co., Ltd. and the investors under the Purchase Agreement, the Deferred Sale Agreement and other related agreements, obliged to transfer the Zero Coupon Bonds to the Bank
for no consideration. The accreted value of the Zero Coupon Bonds is recognized by Bank Mandiri as an other asset
Note 17 on the basis that Bank Mandiri has a right to the Zero Coupon Bonds and that under the terms of the Collateral Agreement, Bank Mandiri has an option, subject to the prior discharge by
Badaneg of its obligations to STB Leasing Co., Ltd. and the investors under the Purchase Agreement, the Deferred Sale Agreement and other related agreements, to purchase the BDN SUFRNs for a total
consideration of US3,000 full amount. As there is no legal right of offset until this option to purchase is exercised, Bank Mandiri has recognized the accreted value of the zero coupon bonds as an other
asset instead of offsetting the asset against the aggregate nominal value of the BDN SUFRNs. The asset recognized by Bank Mandiri for the accreted value of Zero Coupon Bonds amounted to
Rp1,127,608, Rp948,410 and Rp995,514 as of June 30, 2004 and 2003, and April 30, 2003, respectively Note 17.
33. MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES
This account represents minority interests in net assets of subsidiaries as follows:
June 30, 2004 June 30, 2003
April 30, 2003
Yayasan Dana Pensiun Bank Dagang Negara 935
915 864
Dana Pensiun Bank Bumi Daya 2,707
2,508 2,374
3,642 3,423
3,238
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
116
34. SHAREHOLDERS’ EQUITY
