Lloyds extends AT1, blaming coronavirus

By David Freitas, Tyler Davies
22 May 2020

Lloyds Banking Group has become the latest financial institution to extend the life of an additional tier one capital instrument (AT1), after arguing on Friday that it would be "uneconomic" for it to refinance its €750m 6.375% notes amid the stress of the coronavirus pandemic.

The UK lender said that it would not exercise the call option on its €750m 6.375% AT1 in June, meaning the bonds will be outstanding for another five years.

"As a result of the extraordinary market challenges presented by Covid-19, the group has decided it is prudent to not ...

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