Lloyds Banking Group Plc has announced that it has agreed to sell a portfolio of European commercial real estate loans to MELF Sarl, an affiliate of Marathon Asset Management LP, as the group looks to lower its “non-core run-off portfolio.”
The proceeds from the sale will be used for general corporate purposes. The transaction, which is expected to be concluded in Q2, is not expected to have a major effect on the group or its capital position.
The group issued a second press release reporting the results of its offers for holders of its Sterling and Euro Enhanced Capital Notes (ECNs) to exchange them for Additional Tier 1 (AT1) securities.
There has been substantial demand, and the equivalent of £4bn of ECNs have been accepted in the offers. As a result, the equivalent £4.45bn of new AT1 securities will be issued – more than the figure expected at the start of the offers.
Lloyds Banking Group has also announced the start of the submission period for its tender offer to retail holders to sell their Sterling-denominated ECNs for cash. The offer will stay open until 4:00pm on April 16, 2014.
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