Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 56

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 56
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 increase, at the time
the Settlement Shares are issued, the Conversion Price may not reflect the market price of LBG’s Ordinary Shares, which could be
significantly lower than the Conversion Price.

Holders of the Additional Tier 1 Securities
have limited anti-dilution protection.

The number of Settlement Shares to be issued to
the Settlement Share Depository on the Conversion Date will be determined by dividing the aggregate principal amount of the Additional
Tier 1 Securities outstanding immediately prior to the Automatic Conversion on the Conversion Date by the Conversion Price prevailing
on the Conversion Date. Fractions of Settlement Shares will not be delivered to the Settlement Share Depository following the Automatic
Conversion and no cash payment shall be made in lieu thereof.

The Conversion Price will be adjusted in the event
that there is a consolidation, reclassification, redesignation or subdivision of the Ordinary Shares, an issuance of Ordinary Shares in
certain circumstances by way of capitalization of profits or reserves, an Extraordinary Dividend (as defined below) or an issue of Ordinary
Shares to shareholders as a class by way of rights, but only in the situations and to the extent provided in “Description of the Additional Tier 1 Securities—Conversion—Anti-dilution Adjustment of the Conversion Price”. These may include
any modifications as an Independent Adviser (as defined under “Description of the Additional Tier 1 Securities”) shall
determine to be appropriate, including for certain situations falling between the Conversion Date and the Settlement Date. Any New Conversion
Price (as defined below) following a Qualifying Relevant Event (as defined under “Description of the Additional Tier 1 Securities—Conversion—Conversion upon the Occurrence of a Relevant Event”) will be similarly adjusted, subject to any modifications by the Independent Adviser.
There is no requirement that there should be an adjustment for every corporate or other event that may affect the value of the Ordinary
Shares or that, if a holder of an Additional Tier 1 Security were to have held the Ordinary Shares at the time of such adjustment, such
holder would not have benefited to a greater extent.

In particular, there will be no adjustment to
the Conversion Price if a Non-Qualifying Relevant Event (as defined in “Description of the Additional Tier 1 Securities”
below) occurs such as an acquisition of LBG by an entity that is not an Approved Entity or if the New Conversion Condition (each as defined
below) is not satisfied. Furthermore, the adjustment events that are included are less extensive than those often included in the