LONDON, May 27 (IFR) - Lloyds Banking Group has launched a
liability management exercise to buy back sterling and
euro-denominated covered bonds as part of a plan to "manage its
overall wholesale funding position and better optimise its stock
of outstanding debt securities", according to a statement
released this morning.
Citigroup and Lloyds Bank are dealer managers for the
exercise, which covers two bonds issued by Bank of Scotland plc
and one by Lloyds Bank plc.
The first of the Bank of Scotland bonds is a GBP500m fixed
to floating rate note due December 2014 (XS0208047778), of which
GBP110.35m is outstanding. Lloyds is offering investors
GBP1,000.39 per GBP1,000. The second is a EUR2bn 4.75% note due
January 2015 (XS0327502224), which has EUR854.323m outstanding.
The purchase price will be calculated with reference to a spread
over the 3.75% January 2015 Bund.
The remaining bond, issued in Lloyds' name, is the EUR1.5bn
due March 2015 (XS0482808465). The purchase price will be
determined with reference to the 2.5% February 2015 Bund.
The offer expires on June 3, with pricing details
anticipated on June 4 and settlement on June 10.
(Reporting by Anil Mayre; Editing by Philip Wright)