Lloyds Banking Group intends to raise up to GBP22.5 billion of fresh capital, 7% more than its earlier target of GBP21 billion, reported The Financial Times.
Lloyds said that it would raise up to GBP9 billion through the so-called CoCos that count as debt but convert into equity if the issuer is in severe stress, alongside the GBP13.5 billion rights issue. The bank has cited high levels of investor demand behind the decision to raise the extra funds.
Lloyds has called an extraordinary meeting of shareholders in two weeks to approve the transaction, which aims to bolster capital strength so that it can escape a plan to insure GBP260 billion of toxic assets in the government-backed asset protection scheme, reported the news paper.
