Company: LLOBF
Filing Date: 2025-06-06
Form Type: F-3ASR
Source: 0000950103-25-007096
Chunk: 35

Company: Lloyds Banking Group plc
Filing Date: 2025-06-06
Form: F-3ASR
Chunk 35
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 prior to settlement. The instructions will provide for the transfer of the debt securities or capital securities, as
applicable, from the selling DTC participant’s account to the account of the purchasing Euroclear or Clearstream Luxembourg participant.
Euroclear or Clearstream Luxembourg, as the case may be, will then instruct the common depositary for Euroclear and Clearstream Luxembourg
to receive the debt securities or capital securities, as applicable, either against payment or free of payment.

The interests in the debt securities or capital
securities, as applicable, will be credited to the respective clearing system. The clearing system will then credit the account of the
participant, following its usual procedures. Credit for the debt securities or capital securities, as applicable, will appear on the next
day, European time. Cash debit will be back-valued to, and the interest on the debt securities or capital securities, as applicable, will
accrue from, the value date, which would be the preceding day, when settlement occurs in New York. If the trade fails and settlement is
not completed on the intended date, the Euroclear or Clearstream Luxembourg cash debit will be valued as of the actual settlement date
instead.

Euroclear participants or Clearstream Luxembourg
participants will need the funds necessary to process same-day funds settlement. The most direct means of doing this is to pre-position
funds for settlement, either from cash or from existing lines of credit, as for any settlement occurring within Euroclear or Clearstream
Luxembourg. Under this approach, participants may take on credit exposure to Euroclear or Clearstream Luxembourg until the debt securities
or capital securities, as applicable, are credited to their accounts one business day later.

As an alternative, if Euroclear or Clearstream
Luxembourg has extended a line of credit to them, participants can choose not to pre-position funds and will instead allow that credit
line to be drawn upon to finance settlement. Under this procedure, Euroclear participants or Clearstream Luxembourg participants purchasing
debt securities or capital securities, as applicable, would incur overdraft charges for one business day (assuming they cleared the overdraft
as soon as the securities were credited to their accounts). However, any interest on the debt securities or capital securities, as applicable,
would accrue from the value date. Therefore, in many cases, the investment income on debt securities or capital securities, as applicable,
that is earned during that one-business day period may substantially reduce or offset the amount of the overdraft charges. This result
will,