Business Context and Reporting Period
Company: Lloyds Banking Group plc
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Date: July 29, 2025
Subject: Notification of Redemption of Additional Tier 1 Securities
Key Financial Metrics and Transaction Details
This filing does not report operational financial metrics such as revenue, profit, cash flow, or margins. It details a specific capital management transaction:
- Instrument: $1,500,000,000 7.5% Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (Notes).
- ISIN/CUSIP: US539439AU36 / 539439AU3.
- Redemption Date: September 29, 2025.
- Redemption Price: 100% of principal amount plus accrued but unpaid interest up to, but excluding, the Redemption Date.
- Liquidity Impact: The Group will irrevocably deposit funds sufficient to pay the total Redemption Price with the Trustee prior to the Redemption Date.
Material Changes
The primary material change is the scheduled removal of $1.5 billion in Additional Tier 1 capital from the Group's balance sheet upon redemption. The listing of these Notes on the Global Exchange Market of the Irish Stock Exchange will be cancelled on or shortly after September 29, 2025. Interest accrual on these securities will cease on the Redemption Date.
Guidance, Outlook, and Risks
Management Commentary: The Group has exercised its right to redeem the Notes pursuant to Section 2.12 of the Second Supplemental Indenture dated October 10, 2018. No specific forward-looking guidance regarding future earnings or strategic plans is provided in this specific announcement.
Risks and Contingencies: The filing includes a standard disclaimer regarding forward-looking statements. Identified risks that could cause actual results to differ from expectations include:
- General economic conditions, tariffs, and global trade policies.
- Geopolitical instability (e.g., Russia-Ukraine war, Middle East conflicts, China-Taiwan tensions).
- Market risks including interest rate fluctuations, inflation, and credit market volatility.
- Regulatory changes, capital requirements, and legal proceedings.
- Operational risks, including cyber attacks and third-party supplier failures.
- ESG matters, specifically climate change and decarbonisation.
Investor Verification Checklist
- Verify the exact timing of the irrevocable deposit of funds with the Trustee to confirm the cessation of holder rights.
- Confirm the cancellation of the Notes' listing on the Irish Stock Exchange post-September 29, 2025.
- Review the Group's latest Form 20-F for updated capital ratios and liquidity positions following this redemption.
- Monitor for any subsequent announcements regarding the replacement of this $1.5 billion capital tranche.