Lloyds Banking Group is to issue £7bn in enhanced capital notes, a new form of hybrid debt, it announced on Monday, as the first part of its plans for a £22.5bn capital raising. The group also increased the amount it hopes to raise from US investors in the hybrid debt to $986m from $800m. Demand for the new credit notes was high, with Lloyds receiving offers to exchange in excess of £12.5bn. Lloyds accepted £8.78bn of these offers, exchanging £7bn of them for the new notes, and said it would issue a further £1.48bn in new shares, cash or further ECNs.