Notes Payable

9 Months Ended

Sep. 30, 2021

Notes payable

Debt

Debt

Notes Payable

A.    General

Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions):

	Principal Amount (Currency Denomination) as of		Carrying Value (USD) as of
	September 30, 2021		September 30, 2021		December 31, 2020
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 (1)	$	—	$	—	$	950
4.650% notes, issued in July 2013 and due in August 2023	$	750	750		750
3.875% notes, issued in June 2014 and due in July 2024	$	350	350		350
3.875% notes, issued in April 2018 and due in April 2025	$	500	500		500
0.750% notes, issued December 2020 and due in March 2026	$	325	325		325
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026	$	650	650		650
3.000% notes, issued in October 2016 and due in January 2027	$	600	600		600
1.125% notes, issued in July 2021 and due in July 2027	£	400	540		—
3.650% notes, issued in December 2017 and due in January 2028	$	550	550		550
3.250% notes, issued in June 2019 and due in June 2029	$	500	500		500
1.625% notes, issued in October 2020 and due December 2030	£	400	540		547
3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031	$	950	950		950
1.800% notes, issued in December 2020 and due in March 2033	$	400	400		400
1.750% notes, issued in July 2021 and due in July 2033	£	350	473		—
2.730% notes, issued in May 2019 and due in May 2034	£	315	425		431
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035	$	250	250		250
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047	$	550	550		550
Total principal amount			8,353		8,303
Unamortized net original issuance premiums and deferred financing costs			(44)		(35)
			$	8,309	$	8,268

(1)In January 2021, we completed the early redemption of all $950.0 million in principal amount.

The following table summarizes the maturity of our notes and bonds payable as of September 30, 2021, excluding net unamortized original issuance premiums of $7.2 million and deferred financing costs of $51.0 million (dollars in millions):

Year of Maturity	Principal
2023	$	750
2024	350
2025	500
Thereafter	6,753
Totals	$	8,353

As of September 30, 2021, the weighted average interest rate on our notes and bonds payable was 3.2% and the weighted average remaining years until maturity was 8.3 years. All of our outstanding notes and bonds payable have fixed interest rates and contain various covenants, with which we remained in compliance as of September 30, 2021. Additionally, with the exception of our £400 million of 1.625% senior unsecured notes issued in October 2020, our £400 million of 1.125% senior unsecured notes issued in July 2021, and £350 million of 1.750% senior

unsecured notes also issued in July 2021, in each case where interest is paid annually, interest on our remaining senior unsecured note and bond obligations is paid semiannually.

B.    Note Repayment

In January 2021, we redeemed all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $46.5 million loss on extinguishment of debt on our consolidated statement of income and comprehensive income during the nine months ended September 30, 2021.

In January 2020, we redeemed all $250.0 million in principal amount of our outstanding 5.750% notes due January 2021, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $9.8 million loss on extinguishment of debt on our consolidated statement of income and comprehensive income during the nine months ended September 30, 2020.

C.    Note Issuances

During the nine months ended September 30, 2021 and 2020, we issued the following notes and bonds (in millions):

2021 Issuances	Date of Issuance	Maturity Date	Principal amount used		Price of par value		Effective yield to maturity
1.125% notes	July 2021	July 2027	£	400	99.31	%	1.24	%
1.750% notes	July 2021	July 2033	£	350	99.84	%	1.76	%

2020 Issuances	Date of Issuance	Maturity Date	Principal amount used		Price of par value		Effective yield to maturity
3.250% notes (1)	May 2020	January 2031	$	600	98.99	%	3.36	%
3.250% notes (1)	July 2020	January 2031	$	350	108.24	%	2.34	%

(1)In July 2020, we issued $350.0 million of 3.250% senior unsecured notes due January 2031 (the "2031 Notes"), which constituted a further issuance of, and formed a single series with, the $600.0 million of 2031 Notes issued in May 2020.

We intend to allocate an equal amount of the net proceeds from the July 2021 Sterling-denominated offering of 1.125% notes due 2027 of £400.0 million, which approximated $546.3 million, and the July 2021 Sterling-denominated offering of 1.750% notes due 2033 of £350.0 million, which approximated $480.6 million, as converted at the applicable exchange rate on the closing of the offerings, to finance or refinance, in whole or in part, new or existing eligible green projects in the categories outlined in our Green Financing Framework, which is designed to align with the International Capital Markets Association ("ICMA") Green Bond Principles 2021. Pending the allocation of an amount equal to the net proceeds from the offering of the notes to eligible green projects, we may temporarily use all or a portion of the net proceeds to repay any outstanding indebtedness or for liability management activities, or invest such net proceeds in accordance with our cash investment policy.

The net proceeds of $376.6 million from the July 2020 note offering and the net proceeds of $590.0 million from the May 2020 note offering were used to repay borrowings under our credit facility, to fund potential investment opportunities and for other general corporate purposes.