Lloyds Banking Group will raise up to £22.5bn of fresh capital, 7% more than under last week’s plan for £21bn, amid strong demand from bondholders for a larger allocation of the bank’s ground-breaking contingent convertible instruments, or CoCos, which count as debt but convert into equity when the issuer is in trouble. The bank said it would raise up to £9bn rather than £7.5bn through CoCos, alongside its £13.5bn rights issue. It also emerged on Wednesday that US regulators are examining the instruments. See FT Alphaville, “Cuckoo for CoCos”.

This entry was posted by Gwen Robinson on Thursday, November 12th, 2009 at 4:56 and is filed under Capital markets. Tagged with CoCos, Lloyds Banking Group. Edit this entry.