The Directors expect Bondholders to receive an average of 6% interest over the 20 year term of the Bonds, although some variation in the level of interest payments from year to year may occur.
If interest is not paid at 6% in any year, the relevant shortfall will roll over until the shortfall is paid or the 20 year term of the Bonds comes to an end. If a bad year is followed by a good year, this means that interest paid on Bonds could fluctuate from, for example, 4% in the bad year to 8% in the good year. However, the Directors generally expect to be able to pay interest on the Bonds at or close to 6% in most years and do not expect large variations in interest payments over the term of the Bonds.
If at the end of the term a shortfall(s) remain, then the relevant shortfall(s) will be cancelled and will no longer be due to Bondholders. There is therefore a risk that the average interest rate paid to Bondholders over the term of the Bonds may be less than the 6%. Bondholders will not earn interest on any shortfall whilst such shortfall is outstanding.