Lloyds Banking Group

Lloyds Banking Group plc Rights Issue

The company announced on 3 November 2009 that, subject to shareholder approval, they intend to raise additional capital by way of a rights issue.

Any shareholder who had an investment in the ordinary shares as of 08:00 on 27 November 2009 is entitled to apply for 1.34 additional shares for every 1 share previously held at a rate of 37 pence per new share.

Following your agreement to certain disclaimers, you can access the scheme documentation through the company’s website at http://webcasts.lloydsbankinggroup.com/capitalraising/.

Please pay particular attention to the details of risks which can be found at pages 11 to 33.

The timetable for the scheme can be found on page 43. Please note that the registrar’s deadline for the offer is stated as 11:00 on 11 December 2009, however, in order for all customer acceptances of the offer to be collated and reconciled, The Share Centre will have a deadline for customer responses by 14:00 on 9 December 2009.

Following approval at the company’s Extraordinary Meeting which was held on 26 November 2009, The Share Centre has written out to all eligible shareholders on 27 November 2009 with details of the scheme and the options available to them.

Acceptance of the offer maybe made through your online account, by email to corpactions@share.co.uk, or by fax to 01296 41 40 40.

Customer timetable of events

26 November		Lloyds EGM approval of rights issue

27 November		The Share Centre contacts all customers holding Lloyds Banking Group shares First day of trading for nil paid rights shares

8 December		Last day of trading for nil paid rights shares from your account

9 December		Last day for customers to respond to The Share Centre. 14:00 latest

14 December		New shares received and added to customer accounts

Our Advice team view

"On 24 November the details of the Lloyds Banking Groups rights issue were finally announced. The £13.5 billion request is the largest ever rights issue by a European company and will hopefully be the last time Lloyds needs to tap investors for further funds.

As of the 27 November the Lloyds shares are trading ex-rights, hence the large sudden drop in share price. Also concerns over the debt situation in Dubai have reverberated around global banks, which have caused further falls.

Investors now have four choices:

1. You can take up the rights, paying a further 37 pence per allotted share;
2. Sell the rights and take the cash;
3. Allow the rights to lapse and these will then be sold for you once the take-up period has finished;
or
4. You can ‘tailswallow’, which is where you can sell some of the rights to purchase what is left.

Before making any decision investors must take into account if they can afford to take the rights up first of all. In the longer term we believe that Lloyds will recover but this may take some time and your money could be better off invested elsewhere in the meantime."

Nick Raynor, Investment Adviser, The Share Centre.
09:00 27 November 2009.

Investments, their value and income they provide can go down as well as up and you might not get back what you originally invested.

01296 41 40 41

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corporate action?

If you are unsure what to do about a corporate action and how it might affect you, please call our Customer Services team on
01296 41 40 41.

The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority and is entered in the register (www.fsa.gov.uk/register/) under reference 146768. Registered office: Oxford House, Oxford Road, Aylesbury, Buckinghamshire, HP21 8SZ. Registered in England no. 2461949. VAT registration no. 596 3918 82.