Eng - IOI Group

Notes To The Financial Statements cont’d34. LONG TERM BORROWINGS cont’d34.2 USD310 Million Zero Coupon Guaranteed Exchangeable Bonds due 2009 (“1 st Exchangeable Bonds”) cont’div.Unless the 1 st Exchangeable Bonds have been previously redeemed, repurchased and cancelled or exchanged, eachBondholder has the right, at such Bondholder’s option, to require the Issuer to repurchase all or any part of its 1 stExchangeable Bonds at the Accreted Principal Amount on 8 August 2006.v. Unless previously redeemed, repurchased and cancelled or exchanged, the 1 st Exchangeable Bonds will be redeemedat their Accreted Principal Amount of 104.46% on 18 September 2009.At initial recognition, the 1 st Exchangeable Bonds were recognised in the Group balance sheets as follows:GroupRM’000Face value 1,178,000Equity component (119,928)Deferred tax liability (46,638)Liability component on initial recognition 1,011,434The 1 st Exchangeable Bonds exchanged during the financial year are as follows:GroupNominalValue of 1 stExchangeableNo. ofBonds Exchange shares(USD) price issued Remarks2007Exchange prior to Share Split 123,786,000 RM11.06 42,530,382 Ordinary share of RM0.50 eachAdjustment pursuant to Share Split - - 170,121,528 Ordinary share of RM0.10 each123,786,000 - 212,651,910 Ordinary share of RM0.10 eachExchange after Share Split 5,960,000 RM2.20 10,294,544 Ordinary share of RM0.10 each129,746,000 - 222,946,454 Ordinary share of RM0.10 each2006Exchange during the financial year 180,254,000 RM11.06 61,931,661 Ordinary share of RM0.50 eachAdjustment pursuant to Share Split - - 247,726,644 Ordinary share of RM0.10 each180,254,000 - 309,658,305 Ordinary share of RM0.10 eachIOI Corporation BerhadANNUAL REPORT 2007 202