UPDATE:Lloyds Sells EUR235M,GBP350M Of Bonds Backed By UK SME Loans

(Adds details) by Mark Brown Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Lloyds TSB Bank PLC, part of Lloyds Banking Group PLC (LLOY.LN) of the U.K., has sold bonds worth nearly GBP550 million backed by loans to U.K. small and medium-sized enterprises, a Lloyds spokeswoman said Tuesday. GBP350 million and EUR235 million of triple-A rated bonds were pre-placed with a small group of investors from the U.K. and Europe, the spokeswoman said. A EUR60 million triple-A tranche, a GBP110 million double-A tranche, and two unrated tranches totalling GBP154.2 million, were retained by the issuer. The notes were issued by a collateralized debt obligation, or CLO, called Sandown Gold PLC. CLOs issue bonds serviced with the payments made on corporate loans. The bonds are divided into slices with varying credit risk. -by Mark Brown, Dow Jones Newswires; + 44 (0)207 842 9485, mark.brown@dowjones.com (END) Dow Jones Newswires July 13, 2010 11:58 ET (15:58 GMT)