Lloyds unveils new plans to raise £25bn - papers

clock

Lloyds Banking Group has submitted new plans to the FSA in a bid to cut its participation in the government-backed toxic debt insurance scheme.

The bank seeks to raise £25bn in capital through a combination of debt-to-equity conversions and a rights issue. It has agreed to insure £260bn of loans with the APS and pay the Government a £15.6bn fee in special "B" shares, increasing the state ownership from 43% to 62%. But the bank wants to reduce or withdraw completely from the APS to limit European state-aid competition remedies. Lloyds has proposed a rights issue of up to £10bn and a reorganisation of its capital base to raise funds.It has £7bn of preference shares and £11bn of other hybrid tier one and tier two debt instruments...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers on Iran war: 'My advice goes well beyond just saying don't panic'

Advisers on Iran war: 'My advice goes well beyond just saying don't panic'

‘Clients are naturally concerned’

clock 11 March 2026 • 5 min read
The capacity trap: Why advice firms can't hire their way out of the admin crisis

The capacity trap: Why advice firms can't hire their way out of the admin crisis

'You cannot outrun a broken process by adding more people to it'

Stuart Breyer
clock 10 March 2026 • 3 min read
The enduring value of advice in an era of DIY investing

The enduring value of advice in an era of DIY investing

'The debate is about execution and consistency'

Chris Ball
clock 10 March 2026 • 4 min read