Regulated airport bonds

Class A/Senior bonds issued by Heathrow Funding Limited ⁽¹⁾

Class B/Junior bonds issued by Heathrow Funding Limited ⁽³⁾

Bonds issued by Heathrow Finance plc

Notes

1. The bonds are issued by Heathrow Funding Limited but certain of the bonds were originally issued by LHR Airports Limited (previous BAA plc) and migrated to Heathrow Funding Limited as part of the Group's refinancing completed in 2008.
2. The Class A bonds with scheduled redemption dates up to and including 15 February 2018 (other than such bonds issued since 18 August 2008, being the bonds with scheduled redemption dates of 8 June 2015, 25 June 2015, 12 October 2016, 25 January 2017 and 8 February 2017) benefit from a guarantee from LHR Airports Limited.
3. If Class A bonds are not redeemed on the Scheduled Redemption Date, they remain outstanding until their legal maturity date which is 2 years later than the Scheduled Redemption Date. During this two year period, the coupon paid would be based on a floating rate plus 4% per annum. For Class B bonds the legal maturity date is the same as the Scheduled Redemption Date. The legal maturity date of the Class A Bonds is 2 years after the Scheduled Redemption Date to cater solely for the possibility that Heathrow Airport Limited might default on repayment of its inter-company loan from Heathrow Funding due to be repaid by the relevant Scheduled Redemption Date to provide Heathrow Funding Limited with the funds to repay the related bond. As such, the Group does not have the right to extend the Scheduled Redemption Date.
4. The nominal value outstanding of certain of the bonds issued before August 2008 is lower than the original issue size due to certain bondholders either voting against the refinancing proposals or being ineligible to participate in the refinancing completed in August 2008.
5. The Euro-denominated issues with scheduled redemption dates of 30 September 2014, 12 October 2016, 25 January 2017, 15 February 2018, 26 January 2032 and 2 April 2032 were converted into sterling at a rate of 0.684, 0.8675, 0.834, 0.68027, 0.832 and 0.8389 respectively.
6. The US dollar-denominated issue with the scheduled redemption date of 15 July 2021 was converted into sterling at a rate of 0.6213.
7. The CHF-denominated issue with the scheduled redemption date of 8 February 2017 was converted into sterling at a rate of 0.68075.
8. The US dollar-denominated issue with the scheduled redemption date of 25 June 2015 was converted into sterling at a rate of 0.63861.
9. The CAD dollar-denominated issue with the scheduled redemption date of 3 July 2019 was converted into sterling at a rate of 0.624.
10. This is an index-linked bond where, in addition to the coupon payable of 1.65%, the change in the retail prices index from the time of issue will be added to the notional/nominal value of the bond. The notional value of this bond is quoted at £185.4m as at 31 March 2013 which includes accretion of £5.4 million on its effective original issue value of £180.0 million.
11. This is a zero coupon bond where a yield of 4.25% per annum from the time of issue will be accrued on the notional/nominal value of the bond.
12. This is a zero coupon bond where a yield of 4.12% per annum from the time of issue will be accrued on the notional/nominal value of the bond.
13. This is an index-linked bond where, in addition to the coupon payable of 3.334%, the change in the retail prices index from the time of issue will be added to the notional/nominal value of the bond. As at 31 March 2013, the notional value of this bond was £527.2m which includes accretion of £67.2m on its effective original issue value of £460.0m.

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