US demand for Cocos takes Lloyds ECN swaps to 5.4bn pounds

Lloyds Banking Group has received institutional demand to swap 1.6bn dollars worth of its Enhanced Capital Notes (ECNs) for new additional Tier 1 (AT1) capital bonds.ECNs were bonds issued to help bail out the bank in 2009 and are also known as contingent convertibles or Cocos.The bank will have to issue of $1.675bn (£1.01bn) of new AT1 securities, bringing the total amount of AT1 securities issued by the group to approximately £5.35bn.The exchange offer is expected to be settled on or around April 7th, with a separate tender offer for eligible retail holders to sell their Sterling-denominated ECNs for cash remaining open until 16:00 London time on April 16th.OH