Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 45

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 45
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’s right to make an election for
a Settlement Shares Offer to be effected.

<div align='center'>S-37</div>

There is also a risk that the Additional Tier
1 Securities will be further subordinated to the Existing Preference Shares upon a future change in the regulatory capital classification
of the Existing Preference Shares or any other securities ranking or expressed to rank pari passuwith the Existing Preference
Shares (including as a result of a discretionary election by LBG (but subject to the permission of the Relevant Regulator to the extent
then required under Applicable Regulations)). Should the Existing Preference Shares qualify as Tier 2 capital of LBG in the future, LBG
may make a determination (which it is able to do in its sole discretion) (a “Determination”) to subordinate the Additional
Tier 1 Securities to the Existing Preference Shares and any other securities ranking or expressed to rank pari passu with the Existing
Preference Shares, thereby preserving the Additional Tier 1 Securities' capital treatment as Additional Tier 1 Capital of LBG. If LBG
makes such a Determination, then the Additional Tier 1 Securities shall cease to rank pari passu with, and will instead rank below,
the Existing Preference Shares and any other securities ranking or expressed to rank pari passuwith the Existing Preference Shares.

In addition, there is a risk that the Additional
Tier 1 Securities may, once a Determination has been made in respect of them, be subordinated to any Additional Tier 1 securities of LBG
which do not contain an equivalent mechanism to achieve subordination to the Existing Preference Shares as described above.

Subject to applicable law, no holder or beneficial
owner of the Additional Tier 1 Securities may exercise, claim or plead any right of set-off, compensation, counterclaim, netting or retention
in respect of any amount owed to it by LBG arising under, or in respect of, or in connection with, the Additional Tier 1 Securities and
each holder and each beneficial owner of the Additional Tier 1 Securities shall, by virtue of its holding of any Additional Tier 1 Securities,
be deemed to have waived all such rights of set-off, compensation, counterclaim, netting or retention.

Subject to complying with applicable regulatory
requirements, LBG expects from time to time to incur additional indebtedness or other obligations that will constitute senior and subordinated
indebtedness, and the Additional Tier 1 Securities do not contain any provisions restricting the ability of LBG or its subsidiaries to