US demand for Cocos takes Lloyds ECN swaps to 5.4bn pounds

3rd Apr 2014 11:54

Lloyds Banking Group has received institutional demand to swap 1.6bn dollars worth of its Enhanced Capital Notes (ECNs) for new additional Tier 1 (AT1) capital bonds.ECNs were bonds issued to help bail out the bank in 2009 and are also known as contingent convertibles or Cocos.The bank will have to issue of $1.675bn (£1.01bn) of new AT1 securities, bringing the total amount of AT1 securities issued by the group to approximately £5.35bn.The exchange offer is expected to be settled on or around April 7th, with a separate tender offer for eligible retail holders to sell their Sterling-denominated ECNs for cash remaining open until 16:00 London time on April 16th.OH