Lloyds receives oversubscribed debt swap offer of 4bn pounds

Lloyds Banking has received substantial institutional demand from investors in its Enhanced Capital Notes (ECNs), bonds that were used to help bail out the bank in 2009 and known as Cocos, worth around 4bn pounds.The FTSE 100 bank offered to swap the ECNs for new Additional Tier 1 (AT1) capital bonds.Lloyds said it would issue the equivalent of £4.35bn across four series of new AT1 securities, around £0.35bn more than the amount anticipated at the beginning of the offers. Settlement of the exchange offers is expected to occur on or around April 1st.The bank also announced the opening of the submission period for its tender offer to retail bond holders to sell their ECNs for cash, which is open until April 16th.In a separate statement, Lloyds agreed the sale of a portfolio of European commercial real estate loans for £235m part of its strategy to reduce its non-core run-off portfolio.The bank said the sale would not have a material effect. The gross assets subject to the transaction are £494m and in the year to December 31st 2013 incurred a loss of £(54)m. Lloyds shares were almost flat by 08:15 on Thursday morning. OH