Lloyds unveils new plans to raise £25bn - papers

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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...

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