19. Creditors: amounts falling due after more than one year
| Group | Company | |||||
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| 31 December 2003 £m |
31 December 2002 £m |
31 December 2003 £m |
31 December 2002 £m |
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| Other creditors | 5 | 7 | – | – | ||
| Bank loans (secured): | ||||||
| between one and five years | 262 | 138 | – | – | ||
| over five years | 442 | 438 | – | – | ||
| Total bank loans | 704 | 576 | – | – | ||
| 2% Convertible US Dollar Bonds 2005 | 62 | – | – | – | ||
| 6.25% Convertible US Dollar Bonds 2023 | 138 | – | – | – | ||
| Total bonds | 200 | – | – | – | ||
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| Total creditors: amounts falling due after more than one year | 909 | 583 | – | – | ||
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The bank loans are secured by fixed and floating charges over the assets of certain subsidiary undertakings.
Convertible bonds
2% Convertible US Dollar Bonds 2005
On 24 November 2000, International Power (Cayman) Limited, a wholly-owned subsidiary company incorporated in the Cayman Islands, issued US$357 million
2% convertible notes due 2005, convertible into Preference Shares of International Power (Cayman) Limited at the holder’s option, exchangeable for Ordinary
Shares of, and unconditionally guaranteed on a senior unsecured basis by, International Power plc.
The notes are convertible into Ordinary Shares of International Power plc at a conversion price of 300p at any time between 4 January 2001 and 23 November 2005. Each US$1,000 principal amount of notes will entitle the holder to convert into a US$1,000 paid up value of Preference Shares of International Power (Cayman) Limited. Investors may elect to receive their Ordinary Shares in the form of American Depositary Receipts.
On 24 November 2003, US$254 million of the notes were redeemed at the holder’s option at a redemption price of 107.1% of its principal amount, with accrued and unpaid interest. The balance of US$103 million will remain for a further two-year period at an effective interest rate of 4.6%.
The ‘unput’ convertible unsecured notes will be redeemed on 24 November 2005 at a redemption price of 112.4% of its principal amount. Accordingly the convertible bond is now shown within long-term liabilities.
3.75% Convertible US Dollar Bonds
On 22 August 2003, International Power (Jersey) Limited, a wholly-owned subsidiary company incorporated in Jersey, issued US$252.5 million 3.75% convertible
notes due 2023, convertible into Preference Shares of International Power (Jersey) Limited at the holder’s option, immediately exchangeable for Ordinary Shares of,
and unconditionally guaranteed by, International Power plc.
The notes are convertible into Ordinary Shares of International Power plc at a conversion price of 200p at any time between 2 October 2003 and 12 August 2023. Each US$1,000 principal amount of notes will entitle the holder to convert into a US$1,000 paid up value of Preference Shares of International Power (Jersey) Limited.
The notes may be redeemed at the holder’s option at their principal amount, together with accrued interest, to the date fixed for redemption.
If the conversion option is not exercised, the convertible unsecured notes will be redeemed on 22 August 2023 at a redemption price equivalent to their principal amount.
Premium on redemption of convertible bonds
Provision is made for the possible premium on redemption of the 2005 and 2023 convertible bonds. This is included within the carrying amount of the bonds.
At 31 December 2003, the amount accrued was £8 million (31 December 2002: £13 million). The finance cost charged in the profit and loss account comprises
the aggregate of the coupon on the convertible unsecured notes and the proportion of the premium on redemption that relates to the financial year.