Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 37

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 37
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's ability to make discretionary distributions in certain circumstances, in which case LBG may reduce or cancel interest payments
on the Securities. For example, a firm will be deemed not to have met its combined buffer, and may become subject to the MDA Restrictions,
where it does not have own funds and eligible liabilities in an amount and quality to meet: (i) its combined buffer, (ii) its 4.5 per
cent Pillar 1 CET1 capital requirement and its Pillar 2A CET1 capital requirement, (iii) its 6 per cent Pillar 1 Tier 1 requirement and
its Pillar 2A Tier 1 requirement, (iv) its 8 per cent Pillar 1 total capital requirement and its Pillar 2A total capital requirement,
and (v) its Pillar 1 and Pillar 2A MREL requirements, as applicable. Please see “—There may be regulatory restrictions on distributions that will restrict LBG from making interest payments on the Additional Tier 1 Securities in certain circumstances, in which case LBG will cancel such interest payments.” below for further details of such capital, buffer and MREL requirements
as they apply to the Group.

The PRA expects firms not to double count CET1
towards both MREL and the amount reflecting the risk-weighted capital and leverage buffers. Accordingly, any failure by us to meet our
MREL requirement could negatively impact our combined buffer requirement and result in, among other things, the imposition of restrictions
or prohibitions on discretionary payments.

Furthermore, you will bear the risk of changes
to the Group’s capital, leverage and/or MREL resources in general and, in particular, to the Regulatory Group’s CET1 Ratio
(including changes to its CET1 Capital and Risk Weighted Assets). Further changes to these rules could result in more CET1 capital required
to be held by a financial institution in order to prevent the Maximum Distributable Amount restrictions from applying.

Any interest canceled or deemed canceled on any
relevant Interest Payment Date shall not be due and shall not accumulate or be payable at any time thereafter, and holders of the Additional
Tier 1 Securities shall have no rights thereto or to receive any additional interest or compensation as a result of such deemed cancellation
and shall have no rights to accelerate the principal of the Additional Tier 1 Securities as a result of such interest cancellation. Furthermore,
no cancellation of interest in accordance with the terms of the Indenture shall constitute a default in payment or