Is it equity? Bondholders puzzle over Lloyds exchange

03 Nov 2009

Lloyds Banking Group will conduct the largest ever exchange offer conducted by a financial institution in the coming weeks as it attempts to raise core capital by issuing new contingent capital notes.

Fund managers suggested that equity income funds, not traditional fixed income investors, would be the likeliest buyers of the new securities.

Lloyds confirmed on Tuesday morning that it was seeking to raise at least £7.5bn of contingent core tier one and/or core tier one capital to be generated through ...

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