Lloyds achieves capital raising landmark

11 Dec 2009

Lloyds Banking Group will conclude its record-breaking £13.5bn rights issue today (Friday), completing a three-part capital raising to side-step the UK government’s costly Asset Protection Scheme (APS). While the 43.4% government-owned bank still faces many challenges, its ability to attract private capital contrasts with rival RBS — which is now facing the prospect of having soon to dilute existing shareholders further.

Lloyds’ 1.34 for one issue at 37p appears likely to achieve a strong take-up after the share performed well during rights trading. The deal is a discount of 38.62% to the theoretical ex-rights price (TERP). Bookrunners are BofA Merrill Lynch, UBS, Citigroup, Goldman Sachs, HSBC and JPMorgan Cazenove. ...

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