Lloyds Banking Group will on Tuesday unveil twin sweeteners to persuade existing bondholders to exchange their bonds for riskier investments that could convert into equity, as a key element of the part-nationalised bank’s £25bn recapitalisation programme. Alongside plans to raise up to £13.5bn in a deeply discounted rights issue to be outlined on Tuesday, Lloyds aims to raise £7.5bn of so-called contingent convertibles, or “Cocos”, in a bond financing that would count towards core tier one capital and convert into equity in a “stress scenario”.

This entry was posted by Gwen Robinson on Monday, November 2nd, 2009 at 4:53 and is filed under Capital markets. Tagged with Lloyds Banking Group. Edit this entry.