Bloomberg News

Lloyds Said to Issue $4.15 Billion of Mortgage-Backed Bonds

October 26, 2011

(Adds size of portions sold in second paragraph.)

Oct. 26 (Bloomberg) -- Lloyds Banking Group Plc issued $4.15 billion of U.K. mortgage-backed securities, according to a banker with direct knowledge of the deal.

Lloyds sold $2.95 billion of dollar denominated bonds, said the banker, who declined to be identified before the deal is completed. The lender also issued a 750 million-pound ($1.2 billion) portion, of which more than one third were placed with investors and the remainder retained, said the banker.

The dollar notes with an expected average life of two, three and four years were priced at spreads of 150, 155 and 160 basis points more than the London interbank offered rate, said the banker. The pound portion maturing in almost five years had a 165 basis-point spread.

Barclays Capital, JPMorgan Chase & Co. and Morgan Stanley helped Lloyds market the transaction.

--Editor: Michael Shanahan, Paul Armstrong

To contact the reporter on this story: Esteban Duarte in Madrid at

To contact the editor responsible for this story: Paul Armstrong at

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