Strong demand for Lloyds' US bond exchange

Lloyds Banking Group says it enjoyed "strong investor demand" for its US bond exchange, part of the lender's £22.5bn fundraising.It received offers to exchange $2.7bn of existing securities for new enhanced capital notes (ECN), or CoCos (contingent convertible core Tier 1 securities), way above the maximum available of $986m, increased last month from $800m.The result bodes well for the bank's £13.5bn rights issue. The last deadline is Friday 11 December, with the new shares starting to trade next Monday.Lloyds said last month that investors had responded well to its offer to swap existing debt for contingent capital.Offers to exchange £12.51bn of existing securities were received, of which £8.78bn were accepted. It's issuing almost £7bn of enhanced capital notes (ECN), a new type of hybrid debt, plus a further £1.48bn of shares, cash or ECNs.