(Corrects to say bonds worth nominal 58.5 mln stg)
LONDON, April 17 (Reuters) - Lloyds Banking Group said private retail investors had agreed to sell bonds worth anominal 58.5 million pounds ($98.2 million) which had beenissued to rescue the bank during the 2008/9 financial crisis.
Lloyds, which is 25 percent owned by the government, alsoconfirmed that institutional investors had agreed to exchange 5billion pounds worth of the instruments, known as enhancedcapital notes, for new bonds.
The bank issued the bonds, which were designed to boost thebank's capital if it ran into trouble, in 2009. But new UK andEuropean capital rules in force this year mean the bonds may nolonger count as capital when the bank hits trouble.
($1 = 0.5955 British Pounds) (Reporting by Matt Scuffham; Editing by Paul Sandle)