Update on LBG option to redeem 6.375% AT1 bondsSource: RNS
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:
Douglas Radcliffe +44 (0) 20 7356 1571
Group Investor Relations Director
Tanya Foxe +44 (0) 20 7158 2492
Head of Debt Investor Relations
Matt Smith +44 (0) 20 7356 3522
Head of Media Relations
Lloyds Banking Group plc is registered in Scotland no. 95000. Registered office: The Mound, Edinburgh EH1 1YZ
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