Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 59

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 59
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, regardless of whether such redemption would
be favorable to you. In particular, Article 78(1) of U.K. CRR provides that a competent authority will grant permission for a redemption
or repurchase if either: (i) before or at the same time as such redemption or repurchase, we replace the Additional Tier 1 Securities
being redeemed or repurchased with our own funds instruments of equal or higher quality at terms that are sustainable for our income
capacity; or (ii) we have demonstrated to the satisfaction of the Relevant Regulator that our own funds and eligible liabilities would,
following such redemption or repurchase, exceed the sum of (x) the capital ratios set by Article 92(1) of U.K. CRR (broadly, a CET1 capital
ratio of 4.5%, a Tier 1 capital ratio of 6% and a total capital ratio of 8%) and (y) the combined buffer, in each case, by a margin that
the Relevant Regulator may consider necessary.

<div align='center'>S-44</div>

It is not possible to predict whether the events
referred to above will occur and lead to circumstances in which LBG may elect to redeem the Additional Tier 1 Securities, and if so whether
or not LBG will satisfy the conditions, or elect, to redeem the Additional Tier 1 Securities. LBG may also be expected to exercise its
option to redeem the Additional Tier 1 Securities on any date it is permitted to do so if LBG’s funding costs would be lower than
the then-prevailing interest rate payable in respect of the Additional Tier 1 Securities. If the Additional Tier 1 Securities are so redeemed,
there can be no assurance that holders of the Additional Tier 1 Securities will be able to reinvest the amounts received upon redemption
at a rate that will provide the same rate of return as their investment in the Additional Tier 1 Securities. Furthermore, the redemption
feature of the Additional Tier 1 Securities (and, in particular, any market perception that a call right may be exercised) may limit their
market value, which is unlikely to rise substantially above the price at which the Additional Tier 1 Securities can be redeemed.

LBG may substitute the Additional Tier 1 Securities
or vary their terms without holder consent.

If a Tax Event or a Regulatory Event has occurred,
then LBG may, subject to “Description of the Additional Tier 1 Securities—Conditions to Redemption, Purchase, Sub