By Anil Mayre
LONDON, May 27 (IFR) - Lloyds Banking Group has launched aliability management exercise to buy back sterling andeuro-denominated covered bonds as part of a plan to "manage itsoverall wholesale funding position and better optimise its stockof outstanding debt securities", according to a statementreleased this morning.
Citigroup and Lloyds Bank are dealer managers for theexercise, which covers two bonds issued by Bank of Scotland plcand one by Lloyds Bank plc.
The first of the Bank of Scotland bonds is a GBP500m fixedto floating rate note due December 2014 (XS0208047778), of whichGBP110.35m is outstanding. Lloyds is offering investorsGBP1,000.39 per GBP1,000. The second is a EUR2bn 4.75% note dueJanuary 2015 (XS0327502224), which has EUR854.323m outstanding.The purchase price will be calculated with reference to a spreadover the 3.75% January 2015 Bund.
The remaining bond, issued in Lloyds' name, is the EUR1.5bndue March 2015 (XS0482808465). The purchase price will bedetermined with reference to the 2.5% February 2015 Bund.
The offer expires on June 3, with pricing detailsanticipated on June 4 and settlement on June 10. (Reporting by Anil Mayre; Editing by Philip Wright)