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
114
32. LOAN CAPITAL
This account consists of the following:
June 30, 2004 June 30, 2003
April 30, 2003
Rupiah: Conversion of Liquidity Credit from
Bank Indonesia KLBI 1,755,000
1,755,000 1,755,000
Foreign currency: Subordinated Undated Floating Rate Notes
SUFRNs BDN
1,266,975 1,115,775
1,171,193 3,021,975
2,870,775 2,926,193
The conversion of liquidity credit from Bank Indonesia represents the conversion of fund borrowings from Bank Indonesia to former Bapindo with 0 interest based on the Subordinated Loan Agreement
No. 28549UKUPMK dated November 6, 1995 and letters from the Minister of Finance of the Republic of Indonesia No. S-618MK.0171995 dated October 26, 1995 and No. 28547UKUPMK
dated November 6, 1995. Based on Law “Undang-undang” No. 231999 dated May 17, 1999 regarding Bank Indonesia BI, BI is not allowed to provide loans to the Government; thus, requiring
Bank Mandiri to pay back this subordinated loan on demand. Based on Bank Mandiri’s Director’s Letter No. DIR.FIF1142003 dated April 28, 2003, Bank Mandiri proposed to BI to repay the Subordinated
Loans and Loan Capital in 11 years, from 2004 until 2014, with interest at the rate of 0.25 per annum and fixed annual installment payments of Rp285,440.
Bank Indonesia, through its letter No. 632DPwB2PwB21 dated May 5, 2004, responded and requested that Bank Mandiri revise the proposal by considering BI’s scenarios The Bank has submitted a new
proposal to BI Note 60e .
BDN SUFRNs Under a Subscription Agreement dated November 26, 1990 and a Trust Deed dated November 29,
1990, BDN issued SUFRNs with an aggregate nominal value of US135,000,000 full amount through its Cayman Islands Branch to Badaneg Ltd. “Badaneg”, a special purpose vehicle incorporated in the
Cayman Islands, in exchange for cash of US97,200,000 full amount.
The aggregate nominal value of the BDN SUFRNs is recognized as loan capital as approved by Bank Indonesia in its letter No. 27295BPBIAdBI dated November 7, 1994, and accrued interest thereon is
recognized as a liability at June 30, 2004 and 2003, and April 30, 2003 because Bank Mandiri assumed all of BDN’s assets and liabilities from the date of the merger Note 3. The BDN SUFRNs
are perpetual as they have no stated maturity date.
Interest on the BDN SUFRNs is calculated based on their aggregate nominal value at 1.1 per annum above the six-month LIBOR interest rate through November 30, 2005, and following this date interest
is calculated based on their aggregate nominal value at 0.001 per annum. While the BDN SUFRNs remain outstanding, accrued interest is due and payable semi-annually in arrears at the end of each
interest period in May and November.
To fund its purchase of the BDN SUFRNs, in November 1990 Badaneg entered into a Purchase Agreement and a Deferred Sale Agreement with investors represented by Japan Leasing Hong Kong
Ltd. now represented by STB Leasing Co., Ltd. under which Badaneg sold and repurchased certain property on deferred payment terms, proceeds from which were used to fund the purchase of the BDN
SUFRNs for US97,200,000 full amount and the purchase of US135,000,000 full amount of zero coupon bonds issued by IMI Bank International unconditionally and irrevocably guaranteed as to
payment of interest and principal by Istituto Mobiliare Italiano the “Zero Coupon Bonds” in exchange for cash of US37,800,000 full amount. The Zero Coupon Bonds formed the collateral for the
repurchase of the property under the Deferred Sale Agreement.
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
