Convertible Notes
33. Convertible notes are specified as follows:
| Proceeds from issue of convertible notes - nominal amount | 2.000 | 2.000 | ||||||||||
| Transaction cost | ( 39 ) | ( 39 ) | ||||||||||
| Net proceeds | 1.961 | 1.961 | ||||||||||
| Amount classified as equity | ( 110 ) | ( 110 ) | ||||||||||
| Expensed transaction cost | 38 | 9 | ||||||||||
| Carrying amount of liability | 1.889 | 1.860 | ||||||||||
Convertible notes were issued in October 2006. The nominal amount in ISK will be paid in a single amount in 2011. They are convertible at the option of the holder into ordinary shares over the 5 year period at the price ISK 29.7 per share, 20% each year. The effective interest was 17.5% at year-end.
