LONDON - Lloyds Banking Group (LON:LLOY) plc has announced the redemption of its €750 million contingent convertible securities, with the redemption process set to finalize on June 27, 2025. The securities in question, which carry a 6.375% fixed rate, will be bought back at their full principal value, along with any accrued interest up until the redemption date.
The financial instruments, known as Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities, have been listed on the Global Exchange Market of the Irish Stock Exchange. However, following their redemption, the listing will be cancelled. The move will see the securities redeemed at 100% of their principal amount.
To ensure the redemption process is carried out smoothly, Lloyds Banking Group will deposit the necessary funds with the Trustee, BNY Mellon (NYSE:BK) Corporate Trustee Services Limited, or a designated Paying Agent prior to the redemption date. This deposit will cover the total redemption price due to the holders of the securities. Once the deposit is made, all rights of the securities holders will cease, except for the right to receive the redemption price. Additionally, interest on the securities will stop accruing from the redemption date onwards.
This financial maneuver is part of the Group’s capital management strategy. The redemption of these securities is a significant step for the company, as it demonstrates the Group’s proactive approach to managing its capital structure and obligations to security holders.
Investors and stakeholders can expect the securities to be fully redeemed and no longer outstanding following the deposit of the redemption funds. This action will conclude the lifecycle of these particular financial instruments as part of Lloyds Banking Group’s broader financial management activities.
This information is based on a press release statement from Lloyds Banking Group plc.
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