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Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024211STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS31.CONVERTIBLE BONDS (continued)Redemption and Cancellation of Convertible Bonds during 2023 (continued)The terms and conditions of the bonds provide, among other matters, that the Issuer could, at the option of the holder of any convertible bonds (the %u201cPut Option%u201d), redeem all or some only of such holder%u2019s bonds on 30 September 2023 at 100 per cent. of their principal amount, together with interest accrued but unpaid up to but excluding such date.At the same date, the Company announced that as the holders of the convertible bonds in an aggregate principal amount of US$348,600,000 gave notice to exercise their Put Option, the Company had on 29 September 2023 fully redeemed parts of the outstanding convertible bonds in an aggregate principal amount of US$348,600,000, representing approximately 99.6% of the initial aggregate principal amount of the convertible bonds.On 4 October 2023, the Company served a notice to exercise its right to redeem all and not some only of the outstanding convertible bonds in the aggregate principal amount of US$600,000 on 3 November 2023. Following such redemption, the redeemed bonds were cancelled in accordance with the terms and conditions of the convertible bonds and none of the convertible bonds remained outstanding as of 31 December 2023 and 2024.The convertible bonds issued were split into the liability and equity components as follows:Liability componentEquity componentTotalUS$%u2019000US$%u2019000US$%u2019000Issue of convertible bonds301,49948,501350,000Direct transaction costs(4,959)%u2013(4,959)At the issuance date296,54048,501345,041At 1 January 2023319,05348,501367,554Effective interest expense11,901%u201311,901Net increase in interest payable(3,922)%u2013(3,922)Conversion of convertible bonds(747)(111)(858)Redemption of convertible bonds(326,285)(48,390)(374,675)At 31 December 2023 and 31 December 2024%u2013%u2013%u2013