Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 55

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 55
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 (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.

<div align='center'>S-42</div>

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.

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 Ordinary Shares is diminished. In addition, there
may be a delay in a holder receiving its Settlement Shares or ADSs following a Trigger Event, during which time the market price of LBG’s
Ordinary Shares may further decline. See “Description of the Additional Tier 1 Securities—Conversion—Conversion Procedures”.
As a result, the realizable value of the Settlement Shares delivered may be below the Conversion Price. The Conversion Price was fixed
on February 24, 2025 at £0.633 per Settlement Share, and is subject to limited anti-dilution adjustments,
as described under “Description of the Additional Tier 1 Securities—Conversion—Anti-dilution Adjustment of the Conversion Price”. Although the market value of any Settlement Shares or ADSs you receive (if any) could over time