Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 67

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 67
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 ADSs is only possible after delivery of the Settlement Shares following the Conversion
Date and the registration of the person entitled to the Settlement Shares in LBG’s share register as a shareholder with voting
rights in accordance with the provisions of, and subject to the limitations provided in, the articles of association of LBG. For further
information, see “Description of the Additional Tier 1 Securities—Conversion—Conversion Procedures”.

<div align='center'>S-48</div>

As a result of holders receiving Settlement
Shares or ADSs upon a Trigger Event, they are particularly exposed to changes in the market price of the Ordinary Shares or ADSs.

Many investors in convertible or exchangeable
securities seek to hedge their exposure in the underlying equity securities at the time of acquisition of the convertible or exchangeable
securities, often through short selling of the underlying equity securities or through similar transactions. Prospective investors in
the Additional Tier 1 Securities may look to sell Ordinary Shares or ADSs (as the case may be) in anticipation of taking a position in,
or during the term of, the Additional Tier 1 Securities. This could drive down the price of the Ordinary Shares and/or ADSs. Since the
Additional Tier 1 Securities will mandatorily convert into a variable number of Settlement Shares upon a Trigger Event, the price of the
Ordinary Shares and/or ADSs may be more volatile if LBG is trending toward a Trigger Event.

Receipt by the Settlement Share Depository of
the Settlement Shares shall be good and complete discharge of LBG’s obligations in respect of the Additional Tier 1 Securities.

Following a Trigger Event, the relevant Settlement
Shares will be issued and delivered by LBG to the Settlement Share Depository, which subject to a Settlement Shares Offer, will hold the
Settlement Shares on behalf of the holders of the Additional Tier 1 Securities. Receipt by the Settlement Share Depository of the Settlement
Shares shall result in the complete and irrevocable discharge of LBG’s obligations in respect of the Additional Tier 1 Securities
and a holder shall, with effect on and from the Conversion Date, only have recourse to the Settlement Share Depository for the delivery
to it of the relevant Settlement Shares, the deposit of the relevant ADSs or, if LBG elects that a Settlement Shares Offer be made as
described under “Description of the Additional Tier 1 Securities—Conversion—Conversion Procedures—Settlement Shares Offer” below, of any Alternative Consideration to which such holder is entitled as