Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 86

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 86
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 payment, such non-payment shall evidence LBG’s exercise of its discretion to cancel such interest
payment, or the portion of such interest payment not paid, and accordingly such interest payment, or the portion thereof not paid, shall
not be or become due and payable.

Such canceled interest shall not accumulate or
be due and payable at any time thereafter and holders and beneficial owners of the Additional Tier 1 Securities shall not have any right
to or claim against LBG with respect to such interest amount.

<div align='center'>S-61</div>

Any such cancellation shall not constitute a default
and holders and beneficial owners of the Additional Tier 1 Securities shall have no rights thereto or to receive any additional interest
or compensation as a result of such cancellation.

Because the Additional Tier 1 Securities are intended
to qualify as Additional Tier 1 Capital under the U.K. CRR, LBG may cancel, in whole or in part, any interest payment at its discretion
and may pay dividends on its ordinary or preference shares notwithstanding such cancellation. In addition, LBG may use such canceled payments
without restriction to meet its other obligations as they become due.

In addition, the Additional Tier 1 Securities
will cease to bear interest from, and including, the date of any redemption of the Additional Tier 1 Securities as described under “—Redemption, Purchase, Variation and Substitution” unless payment and performance of all amounts and obligations due by LBG in respect of
the Additional Tier 1 Securities is not properly and duly made, in which event interest shall continue to accrue on the Additional Tier
1 Securities until payment and performance of all amounts and obligations has been properly and duly made (subject to LBG’s cancellation
of interest payments).

Furthermore, in the event of the Automatic Conversion
of the Additional Tier 1 Securities upon the occurrence of a Trigger Event, as described under “—Conversion—Automatic Conversion” below, or a Winding-up or Administration Event, any accrued but unpaid interest on the Additional Tier 1 Securities
up to (and including) the Conversion Date shall be canceled upon the occurrence of such Trigger Event, or Winding-up or Administration
Event (as defined under “—Ranking and Liquidation Distribution”), as the case may be, and shall not become due
and payable at any time.

See also “—Agreement to Interest Cancellation” and “—Notice of Interest Cancellation” below.

Payments Subject to Laws

Payments under the Additional Tier 1 Securities
will be