Lloyds Banking Group announces share sale

Lloyds Banking Group announces share sale in bid to raise £13.5 billion

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Tuesday, 24, Nov 2009 11:15

Lloyds Banking Group has today announced it will be selling shares at 37p in the UK's biggest rights issue.

The discount on its shares was taken in a bid to avoid taking part in the government's asset protection scheme.

The group, which is 43 per cent owned by the taxpayer, is selling shares at a discount of 59.5 per cent to Monday's closing price.

A rights issue is where a company issues new shares and sells them to existing shareholders at a discount to the listed share price. The new shares amount to 1.34 new shares for each existing share.

Lloyds Banking Group aims to make £13.5 billion from the sale. The rights issue is part of Lloyds' wider plans to raise about £22.5 billion overall.