Lloyds eyes favourable terms in capital clear-out
Lloyds Bank is looking to buy back one of its more costly perpetual tier one capital instruments, after its valuation collapsed in March. The move took some market participants by surprise, since it would have been approved by UK authorities, which are at the same time insisting that the country's banks conserve their capital levels during the coronavirus crisis.
Lloyds Bank is offering to purchase any or all of its $2bn 12% fixed-to-floating rate tier ones for cash.
The offer is being run by Lloyds and JP Morgan and will expire on April 6.Market participants pointed out that the UK bank was making full ...