Convertible Bond Issue

3i Group PLC
09 July 2003

Not for distribution in or into the United States, Canada, Japan and Australia

3i Group plc

Embargoed: not to be released until 08:01

9 July 2003



3i Group plc - Convertible Bond Issue

3i Group plc ('3i'), Europe's leading venture capital company announced today
that it has launched an offering of Euro 500 million of Senior Unsecured
Convertible Bonds due 2008 (the 'Bonds'), convertible into fully paid ordinary
shares of 3i.



The Bonds will be priced at 100 per cent of the principal amount and will bear a
cash coupon of between 1.0 percent to 1.625 per cent per annum. The initial
conversion price is expected to be set at a premium of between 45.0 per cent and
50.0 per cent to the price of 3i's ordinary shares at the time of pricing.



The final terms of the Bonds are expected to be announced on 9 July 2003.
Settlement of the issue is expected to take place on or before 1 August 2003.



Merrill Lynch International is acting as sole bookrunner (the 'Manager').

In addition, 3i has granted the Manager an over allotment option of up to Euro
50 million of Bonds.

The net cash proceeds of the issue of the Bonds will be used to replace existing
borrowings that are repayable in August and for general corporate purposes.

Application will be made for the Bonds to be admitted to the Official List of
the UK Listing Authority and to the London Stock Exchange for the Bonds to be
admitted to trading on the London Stock Exchange's market for listed securities.
The Bonds will be offered outside the United States in compliance with
Regulation S.

For further information please contact:

3i Group plc            020 7928 3131

Michael Queen

Alan Walker

Patrick Dunne

Merrill Lynch International     020 7995 2000

Michael Findlay

Rupert Hume-Kendall

Julian Kozerski

Richard Snow

STABILISATION/FSA

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 bonds referred to in this announcement
will be issued only to such persons.

This announcement is not for distribution, directly or indirectly in or into the
United States or to any US person (as defined in Regulation S under the US
Securities Act of 1933, as amended ('Regulation S'). These materials are not an
offer of securities for sale into the United States or elsewhere. The securities
may not be offered or sold in the United States or to, or for the account or
benefit of, US persons unless they are registered or exempt from registration.
There will be no public offer of securities in the United States.




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