Lloyds Banking Group Activates AT1 Securities Push-Down Mechanism

Key Highlights

• Lloyds Banking Group activated a push-down mechanism for all outstanding Additional Tier 1 (AT1) Securities.
• Effective July 30, 2026, the Issuer reclassified Existing Preference Shares as Tier 2 Capital.
• This reclassification triggered the subordination of AT1 Securities to these reclassified preference shares.
• AT1 Securityholders will now rank behind Existing Preference Shares in a winding-up, but ahead of ordinary shares.
• The activation affects seven series of AT1 Securities, including £750,009,000 7.875% Callable 2029 securities.
• Also impacted are £750,000,000 Callable 2027, £750,000,000 Callable 2028, and £750,000,000 Callable 2030 AT1 securities.
• Three USD-denominated AT1 series are affected: $1,250,000,000 Callable 2029, $1,000,000,000 Callable 2031, and $1,000,000,000 Callable 2035.
• The ranking of AT1 Securities relative to each other remains pari passu.