Lloyds launches £4bn offer but banks stalked by new capital call fears
Lloyds Banking Group announced plans this week for a £4bn placement and open offer as concerns mount that, along with Royal Bank of Scotland and possibly other UK banks, it could be forced to raise additional capital.
The Lloyds deal, which has Citi, JPMorgan Cazenove and UBS as bookrunners, is designed to substitute £4bn of government-held preference shares with a 12% coupon, costing around £480m a year, with ordinary shares.
"We have long signalled our goal of reducing state aid and redeeming outstanding preference shares
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