LONDON, May 23 (Reuters) - State-backed Lloyds Banking Group said it had raised 450 million pounds ($677 million)from the sale of 15 percent of wealth manager St. James's Place to boost its capital.
Lloyds said the 77 million shares had been placed at 580pence per share, a 9.4 percent discount to its Wednesday closingprice of 640 pence.
After its previous sale of shares in St. James's Place inMarch, Lloyds had agreed not to reduce its stake further for atleast a year, but that lock-up was waived on Wednesday bybookrunner Bank of America Merrill Lynch.
Lloyds, which still holds a 21 percent stake in St. James's,said in a statement on Thursday that the lock-up could not bewaived again for at least six months.
Lloyds said under full Basel III capital rules the placingwill increase its common equity Tier 1 capital by about 500million pounds, or 16 basis points. Under current rules, thebank will realise a gain of about 40 million pounds on the sale.