Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 57

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 57
---
 costs and an amount equal to the pro rata share of certain
taxes that may arise as a result of the Settlement Shares Offer). If some but not all of the Settlement Shares are sold in the Settlement
Shares Offer, holders of the Additional Tier 1 Securities shall be entitled to receive, in respect of each Additional Tier 1 Security,
(a) the pro rata share of the cash proceeds from the sale of the Settlement Shares attributable to such Additional Tier 1 Security translated
from pounds sterling into U.S. dollars at a then-prevailing exchange rate as determined by the Settlement Share Depository (less the pro
rata share of any foreign exchange transaction costs and an amount equal to the pro rata share of certain taxes that may arise as a result
of the Settlement Shares Offer) together with (b) the pro rata share of the Settlement Shares not sold pursuant to the Settlement Shares
Offer attributable to such Additional Tier 1 Security rounded down to the nearest whole number of Settlement Shares.

No interest or other compensation is payable in
respect of the period from the Conversion Date to the date of delivery of the cash proceeds from the sale of the Settlement Shares or
the Settlement Shares in the circumstances described above.

Notice of the results of any Settlement Shares
Offer will be provided to holders of the Additional Tier 1 Securities only at the end of the Settlement Shares Offer Period. Accordingly,
holders of the Additional Tier 1 Securities would not know the composition of the Alternative Consideration to which they may be entitled
until the end of the Settlement Shares Offer Period.

As the Conversion Price is fixed for the Additional
Tier 1 Securities, subject only to limited anti-dilution adjustments in certain circumstances, holders will bear the risk of fluctuation
in the value of Ordinary Shares and/or the U.S. dollar and pounds sterling exchange rate.

Upon the occurrence of a Trigger Event, the Additional
Tier 1 Securities will be automatically converted into Settlement Shares on the Conversion Date. Because a Trigger Event will occur when
LBG’s CET1 Ratio will have deteriorated, the Trigger Event will likely be accompanied by a prior deterioration in the market price
of LBG’s Ordinary Shares, which may be expected to continue after the occurrence of the Trigger Event. Therefore, if a Trigger Event
were to occur, investors would receive Settlement Shares or ADSs (and/or, if applicable, net cash proceeds of a sale of Settlement Shares
pursuant to a Settlement Shares Offer) at a time when the market price of LBG’s