Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 26

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 26
---
 Shares Offer. Furthermore, upon the occurrence of the Automatic Conversion, you will no longer have a debt claim in
relation to principal and any accrued but unpaid interest on the Additional Tier 1 Securities shall be canceled and shall not become due
and payable at any time.

Any such Automatic Conversion will be irrevocable
and, upon the occurrence of the Automatic Conversion, holders will not be entitled to any form of compensation in the event of LBG’s
potential recovery or change in LBG’s fully loaded CET1 Ratio. In addition, on or after the occurrence of a Trigger Event, if LBG
does not deliver Settlement Shares to the Settlement Share Depository, the only claims holders will have against LBG will be for specific
performance to have such Settlement Shares issued and delivered to the Settlement Share Depository or, if a Winding-up or Administration
Event occurs after the Trigger Event, to participate in the liquidation proceeds of LBG as if the relevant number of Settlement
Shares had been issued. Once the Settlement Shares have been issued and delivered to the Settlement Share Depository, the only claims
holders will have will be against the Settlement Share Depository for delivery of Settlement Shares, ADSs or Alternative Consideration,
as applicable.

For a discussion of the risks associated with
the calculation of LBG’s CET1 Ratio see “—For the purposes of the Trigger Event, the CET1 Ratio will be calculated on a “fully loaded” basis. This will result in a lower calculated CET1 Ratio than one using U.K. CRR transitional provisions, increasing the potential for Automatic Conversion in the short term. Changes to the calculation of CET1 capital and/or risk weighted assets may negatively affect LBG’s CET1 Ratio, thereby increasing the risk of a Trigger Event which will lead to the Automatic Conversion, as a result of which your Additional Tier 1 Securities would automatically be converted into Settlement Shares”.

See also “—If a Relevant Event occurs, the Additional Tier 1 Securities may be convertible into shares in an entity other than LBG or may be converted into unlisted shares.” and “—Holders may be obliged to make a take-over bid following a Trigger Event if they take delivery of Settlement Shares” below.

The circumstances surrounding or triggering
the Automatic Conversion are inherently unpredictable and may be caused by factors outside of LBG’s control. LBG has no obligation
to operate its business in such a way as, or take any mitigating actions, to maintain or restore its CET1 Ratio to avoid a Trigger Event