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Lloyds Banking Group to redeem $1.5 billion AT1 securities

Published 29/07/2025, 18:16
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LONDON - Lloyds Banking Group (LON:LLOY) plc announced Tuesday it will redeem the entire outstanding $1.5 billion of its 7.5 percent Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities.

The redemption will take place on September 29, 2025, with bondholders receiving 100% of the principal amount plus any accrued but unpaid interest up to, but excluding, the redemption date, according to a company press release.

The bank has issued a formal redemption notice for the notes, which carry the ISIN US539439AU36 and CUSIP 539439AU3. The notice has been distributed to The Bank of New York Mellon (NYSE:BK), which serves as trustee for the securities.

Lloyds stated that it will deposit sufficient funds with the trustee or a paying agent before the redemption date to cover the total redemption price. Once this deposit is made, all rights of the noteholders will cease, except for receiving the redemption payment.

Following the redemption, the listing of these securities on the Global Exchange Market of the Irish Stock Exchange will be canceled on or shortly after September 29, 2025.

Holders can surrender their notes and obtain payment at The Bank of New York Mellon’s London office at 160 Queen Victoria Street.

The AT1 securities being redeemed were originally issued in October 2018. Additional Tier 1 securities are a form of contingent convertible capital instrument that banks use to meet regulatory capital requirements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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