Update on LBG option to redeem 6.375% AT1 bonds

 22 May 2020

UPDATE ON LLOYDS BANKING GROUP'S OPTION TO REDEEM €750M 6.375% AT1 BONDS

Lloyds Banking Group (the "Group") is today updating the market on its decision in respect of the contractual option to call its €750m 6.375% Additional Tier 1 (AT1) perpetual bonds (ISIN: XS1043545059) (the "Bonds").

The Group continues to be strongly capitalised with 14.2% CET1 and 16.9% Tier 1 ratios at Q1 2020.  However, as a result of the extraordinary market challenges presented by Covid-19, the Group has decided it is prudent to not reduce Tier 1 resources at this time. Market conditions mean it is uneconomic to call and refinance this security. The Group therefore will not be exercising this call option on 27 June 2020.

The Bonds will therefore reset to a new fixed coupon being the equivalent of 5-year Euro Mid Swaps plus 529 basis points from 27 June 2020 (in line with the terms and conditions of the Bonds), until the next optional call date on 27 June 2025.

This announcement contains inside information in relation to the Bonds and is disclosed in accordance with the Market Abuse Regulation (EU) 596/2014 ("MAR"). For the purposes of MAR, this announcement is made by Douglas Radcliffe, Group Investor Relations Director.

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For further information:

Investor Relations

Douglas Radcliffe                                                                                                 +44 (0) 20 7356 1571

Group Investor Relations Director

[email protected]

Tanya Foxe                                                                                                           +44 (0) 20 7158 2492

Head of Debt Investor Relations

[email protected] 

Corporate Affairs

Matt Smith                                                                                                            +44 (0) 20 7356 3522

Head of Media Relations

[email protected] 

Lloyds Banking Group plc is registered in Scotland no. 95000. Registered office: The Mound, Edinburgh EH1 1YZ

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