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LONDON, March 6 (Reuters) - Lloyds Banking Group said it is offering investors of bonds that helped rescue thebank in the financial crisis the chance to swap them for up to 5billion pounds ($8.4 billion) of debt instruments that meet newcapital rules.
Lloyds said it will offer institutional investors the optionto exchange instruments, known as enhanced capital notes (ECNs),for new bonds. Retail ECN holders will also be able to exchangetheir holdings for cash, at a premium to face value.
Lloyds issued the bonds in 2009 and they were designed toboost the bank's capital if it ran into trouble. But new UK andEuropean capital rules in force this year mean the bonds may nolonger count as capital when the bank hits trouble, and Lloydswarned last month it could buy them back at face value.
