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: Are you even taking your own advice?

Advisers: Are you even taking your own advice?

Exploring the expenditure consolidation conversation

Nick Ryan
clock 25 March 2026 • 4 min read
CISI welcomes 76 Certified financial planners

CISI welcomes 76 Certified financial planners

Number of UK CFP professionals continues to rise

Sophia Panayi
clock 24 March 2026 • 1 min read
'Nobody is big enough not to be bought'

'Nobody is big enough not to be bought'

Roderic Rennison on the future of deals in the advice industry

Isabel Baxter
clock 20 March 2026 • 1 min read