Lloyds won’t redeem 6.375% perpetuals on June 27; coupon to be reset

By Sarah Lizee

Olympia, Wash., May 22 – Lloyds Banking Group has decided not to redeem its €750 million of 6.375% additional tier 1 perpetual bonds (ISIN: XS1043545059) on June 27, according to a notice.

The group said that as a result of the extraordinary market challenges presented by Covid-19, it has decided not to reduce tier 1 resources at this time.

“Market conditions mean it is uneconomic to call and refinance this security,” the group said in the notice.

The bonds will therefore reset to a new fixed coupon, being the equivalent of five-year euro mid-swaps plus 529 basis points from June 27 until the next optional call date on June 27, 2025.

Lloyds is a bank and financial services group based in London.

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