Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 33

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 33
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Dividends”. The Additional Tier 1 Securities will rank senior to Ordinary Shares. It is the Board
of Directors’ current intention that, whenever exercising its discretion to declare Ordinary Share dividends, or its discretion
to cancel interest on the Additional Tier 1 Securities, the Board will take into account the relative ranking of these instruments in
LBG’s capital structure. However, the Board may at any time depart from this policy at its sole discretion.

Following cancellation of any interest payment,
LBG will not be in any way limited or restricted from making any distribution or equivalent payments in connection with any Parity Securities
or Junior Securities, including any dividend payments on the Ordinary Shares or preference shares. LBG may therefore cancel (in whole
or in part) any interest payment on the Additional Tier 1 Securities at its discretion and may pay dividends on its ordinary or preference
shares or on other additional tier 1 securities notwithstanding such cancellation. In addition, LBG may without restriction use funds
that could have been applied to make such canceled payments to meet its other obligations as they become due.

In addition to LBG’s right to cancel,
in whole or in part, interest payments at any time, the terms of the Additional Tier 1 Securities also restrict LBG from making interest
payments on the Additional Tier 1 Securities if LBG has insufficient Distributable Items (based on its individual accounts and not on
its consolidated accounts), in which case such interest shall be deemed to have been canceled. LBG will also be required to cancel interest
payments if any payment cannot be made in compliance with the Solvency Condition, or if payment would result in any “maximum distributable
amount” then applicable to the Group to be exceeded.

Subject to the extent permitted in the following
paragraphs in respect of partial interest payments, LBG shall not make an interest payment on the Additional Tier 1 Securities on any
Interest Payment Date (and such interest payment shall therefore be deemed to have been canceled and thus shall not be due and payable
on such Interest Payment Date) (a) to the extent that an amount of Distributable Items on any scheduled Interest Payment Date is less
than the sum of (i) all payments (other than redemption payments) made or declared by LBG since the end of LBG’s last financial
year and prior to such Interest Payment Date on or in respect of any Parity Securities, the Additional Tier 1 Securities, and any Junior
Securities (as defined below) and (ii) all