Notes to the accounts

Notes to the accounts list

29 Convertible bonds

	The Group 2005 £m	The Group 2004 £m	The Company 2005 £m	The Company 2004 £m
Repayable between two years and five years	378	367	378	367

On 1 August 2003, 3i Group plc issued €550 million 1.375% Convertible Bonds due 2008. They are convertible at the option of the Bondholder to cash and ordinary shares at any time from 11 September 2003 to 25 July 2008. The number of shares to be issued on conversion will be determined by dividing the principal of the bond less the cash settled amount by the conversion price in effect on the conversion date. The initial conversion price is £8.416757. Unless previously realised and cancelled, redeemed or converted, these bonds will be redeemed on 1 August 2008.

If certain conditions are met, the Issuer may redeem all, but not some only, of the Bonds for the time being outstanding at their principal amount. The Issuer may make a payment in cash as an alternative to issuing shares upon either conversion or redemption.

Interest is payable on the bonds in equal semi annual instalments in arrears on 12 January and 12 July each year.

The fair value of the convertible bonds at 31 March 2005 was £381 million.