Company: LLOBF
Filing Date: 2025-06-06
Form Type: F-3ASR
Source: 0000950103-25-007096
Chunk: 86

Company: Lloyds Banking Group plc
Filing Date: 2025-06-06
Form: F-3ASR
Chunk 86
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 will be back-valued to, and the interest on the
debt securities will accrue from, the value date, which would be the preceding day, when settlement occurs in New York. If the trade fails
and settlement is not completed on the intended date, the Euroclear or Clearstream Luxembourg cash debit will be valued as of the actual
settlement date instead.

Euroclear participants or Clearstream Luxembourg
participants will need the funds necessary to process same-day funds settlement. The most direct means of doing this is to pre-position
funds for settlement, either from cash or from existing lines of credit, as for any settlement occurring within Euroclear or Clearstream
Luxembourg. Under this approach, participants may take on credit exposure to Euroclear or Clearstream Luxembourg until the debt securities
are credited to their accounts one business day later.

As an alternative, if Euroclear or Clearstream
Luxembourg has extended a line of credit to them, participants can choose not to pre-position funds and will instead allow that credit
line to be drawn upon to finance settlement. Under this procedure, Euroclear participants or Clearstream Luxembourg participants purchasing
debt securities would incur overdraft charges for one business day (assuming they cleared the overdraft as soon as the securities were
credited to their accounts). However, any interest on the debt securities would accrue from the value date. Therefore, in many cases,
the investment income on debt securities that is earned during that one-business day period may substantially reduce or offset the amount
of the overdraft charges. This result will, however, depend on each participant’s particular cost of funds.

Because the settlement will take place during
New York business hours, DTC participants will use their usual procedures to deliver debt securities to the depositary on behalf of Euroclear
participants or Clearstream Luxembourg participants. The sale proceeds will be available to the DTC seller on the settlement date. For
DTC participants, then, a cross-market transaction will settle no differently than a trade between two DTC participants.

Special Timing Considerations

Investors should be aware that they will only
be able to make and receive deliveries, payments and other communications involving the debt securities through Clearstream Luxembourg
and Euroclear on days when those systems are open for business. Those systems may not be open for business on days when banks, brokers
and other institutions are open for business in the United States.

In addition, because of time-zone differences,
there may be problems with completing transactions involving Clearstream Luxembourg and Euroclear on