Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 24

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 24
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BG does not
elect that a Settlement Shares Offer be made), or (ii) the Alternative Consideration, which shall be composed of Settlement Shares, ADSs
and/or cash depending on the results of the Settlement Shares Offer (if LBG elects that a Settlement Shares Offer be made) and the value
of any Settlement Shares, ADSs and/or cash received upon Automatic Conversion may be significantly below the principal amount of the Additional
Tier 1 Securities you hold. Although the market value of the Settlement Shares or ADSs you receive, if any, could over time
increase in value, at the time the Settlement Shares are issued, the Conversion Price may not reflect the market price of the Ordinary
Shares, which could be significantly lower than the Conversion Price. Further, you may not receive any Settlement Shares or ADSs, if all
the Settlement Shares are sold pursuant to a Settlement Shares Offer. The amount of any cash component of Alternative Consideration payable
to you following a Settlement Shares Offer will be calculated after deduction of taxes, duties and certain other charges incurred in connection
with the Settlement 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 “