Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 70

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 70
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 convertible or exchangeable
securities, often through short selling of the underlying equity securities or through similar transactions. Prospective investors in
the Additional Tier 1 Securities may look to sell Ordinary Shares or ADSs (as the case may be) in anticipation of taking a position in,
or during the term of, the Additional Tier 1 Securities. This could drive down the price of the Ordinary Shares and/or ADSs. Since the
Additional Tier 1 Securities will mandatorily convert into a variable number of Settlement Shares upon a Trigger Event, the price of the
Ordinary Shares and/or ADSs may be more volatile if LBG is trending toward a Trigger Event.

Receipt by the Settlement Share Depository of
the Settlement Shares shall be good and complete discharge of LBG’s obligations in respect of the Additional Tier 1 Securities.

Following a Trigger Event, the relevant Settlement
Shares will be issued and delivered by LBG to the Settlement Share Depository, which subject to a Settlement Shares Offer, will hold the
Settlement Shares on behalf of the holders of the Additional Tier 1 Securities. Receipt by the Settlement Share Depository of the Settlement
Shares shall result in the complete and irrevocable discharge of LBG’s obligations in respect of the Additional Tier 1 Securities
and a holder shall, with effect on and from the Conversion Date, only have recourse to the Settlement Share Depository for the delivery
to it of the relevant Settlement Shares, the deposit of the relevant ADSs or, if LBG elects that a Settlement Shares Offer be made as
described under “Description of the Additional Tier 1 Securities—Conversion—Conversion Procedures—Settlement Shares Offer” below, of any Alternative Consideration to which such holder is entitled as described herein. LBG shall not have
any liability for the performance of the obligations of the Settlement Share Depository.

In addition, LBG has not yet appointed a Settlement
Share Depository and LBG may not be able to appoint a Settlement Share Depository if the Automatic Conversion occurs. In such a scenario,
LBG would inform holders of the Additional Tier 1 Securities through DTC or the Trustee or otherwise, as practicable, of any alternative
arrangements in connection with the issuance and/or delivery of the Settlement Shares, ADSs or Alternative Consideration, as applicable,
and such arrangements may be disadvantageous to, and more restrictive on, the holders of the Additional Tier 1 Securities. For example,
such arrangements may involve holders of the Additional Tier