Company: LLOBF
Filing Date: 2025-06-10
Form Type: 424B2
Source: 0000950103-25-007181
Chunk: 27

Company: Lloyds Banking Group plc
Filing Date: 2025-06-10
Form: 424B2
Chunk 27
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 in, the Notes.

<div align='center'>S-26</div>

The “Special Resolution Regime” under
the Banking Act also includes powers to (a) transfer all or some of the securities issued by a U.K. bank or its parent, or all or some
of the property, rights and liabilities of a U.K. bank or its parent (which would include the Notes), to a commercial purchaser or, in
the case of securities, into temporary public ownership, or, in the case of property, rights or liabilities, to a bridge bank (an entity
owned by BoE); (b) together with another resolution tool only, transfer impaired or problem assets to one or more publicly owned asset
management vehicles to allow them to be managed with a view to maximizing their value through eventual sale or orderly wind-down; (c)
override any default provisions, contracts or other agreements, including provisions that would otherwise allow a party to terminate a
contract or accelerate the payment of an obligation; (d) commence certain insolvency procedures in relation to a U.K. bank; and (e) override,
vary or impose contractual obligations, for reasonable consideration, between a U.K. bank or its parent and its group undertakings (including
undertakings which have ceased to be members of the group), in order to enable any transferee or successor bank of the U.K. bank to operate
effectively.

The Banking Act also gives power to the U.K. government
to make further amendments to the law for the purpose of enabling it to use the Special Resolution Regime powers effectively, potentially
with retrospective effect.

The powers set out in the Banking Act could affect
how credit institutions (and their parent companies) and investment firms are managed as well as, in certain circumstances, the rights
of creditors. Accordingly, the taking of any actions contemplated by the Banking Act may affect your rights under the Notes, and the value
of your Notes may be affected by the exercise of any such powers or threat thereof.

The Notes may not be a suitable investment for
investors.

An investor should reach a decision to invest
in the Notes after carefully considering, in conjunction with his or her advisors, the suitability of the Notes in light of his or her
investment objectives and the other information set out in this prospectus supplement and the prospectus. The issue price, interest rate
and yield to maturity of the Subordinated Notes are expected to reflect the additional risks borne by investors in the Subordinated Notes