RNS Number:5990N
International Power PLC
16 July 2003


This release is not for distribution, directly or indirectly into Canada, Japan
or Italy

                                 Press Release


International Power plc to Issue Approx US$ 260 Million Senior Convertible Bonds


London, 16 July 2003 - International Power plc ("International Power" or the 
"Company") announces that it intends to make an offering of approximately US$260
million dollar-denominated Senior Convertible Bonds due 2023 (the "Convertible
Bonds") (the "Offering"). In addition, there will be an over-allotment option of
up to a further US$25 million (up to 10% of the offering amount). The final size
of the transaction, which will be determined at the time of pricing, including
the over-allotment option, will be convertible into up to approximately 83.4
million shares or 7.5% of the Company's outstanding share capital.

The Convertible Bonds will be issued by International Power (Jersey) Limited
(the "Issuer"), unconditionally guaranteed on a senior unsecured basis by
International Power and convertible into exchangeable redeemable preference
shares of the Issuer which will be automatically and immediately exchanged for
ordinary shares of International Power.

International Power expects to use the net proceeds from the sale of the
Convertible Bonds to partially finance the potential put of the Company's 2%
Senior Convertible Notes due 2005 in late November 2003 and to repay the
Company's US$60 million Euro-Dollar Bond due in December 2003.

The subscription period will commence upon issue of this statement and is
expected to end by the close of business today. However, the subscription period
may be closed at an earlier time.

The Convertible Bonds have not been and will not be registered under the US
Securities Act of 1933, as amended ("Securities Act") and may not be offered or
sold in the United States absent registration or an applicable exemption from
the registration requirement of the Securities Act. The Convertible Bonds will
be offered to institutional investors outside of the US, Canada, Japan and
Italy.  Application will be made to list the Convertible Bonds on the London
Stock Exchange.  It is expected that listing will occur on or about 22 August
2003. The Convertible Bonds will be issued to institutional investors at or
about the time they are admitted to listing.  The Convertible Bonds will mature
on or around 22 August 2023. The coupon is expected to be within the range of
3.25% to 3.75%. The conversion price is expected to be set at a premium of 50%
to 55% to a reference price of the ordinary shares on the London Stock Exchange,
set on the day of pricing. The Convertible Bonds may not be called until on or
around 22 August 2008.  Bondholders will have the right to put the Convertible
Bonds at the end of years 7, 10 and 15 at their principal amount plus accrued
interest. The final terms of the terms and conditions will be determined and
announced after close of the subscription period.


                             - DISCLAIMER -

This document is not an offer of securities for sale into the United States.
The Convertible Bonds may not be offered or sold in the United States or to, or
for the account or benefit of, US persons (as such term is defined in Regulation
S) unless they are registered or exempt from registration.  There will be no
public offer of securities in the United States.

In the United Kingdom this announcement is directed exclusively at persons who
fall within article 19 or 49 of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2001.  The Convertible Bonds referred to in this
announcement shall be issued only to such persons.

Stabilisation/FSA.



If you have questions, you may contact:

Philip Cox        Chief Financial Officer                 020-7320-8640
Grant Jones    Director of Communications                 020-7320-8619




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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