Financing ·
Lloyds Banking Group plc announced on 30 July 2026 that it has elected to reclassify its Existing Preference Shares as…
LLDTFLloyds Banking Group plc
Lloyds Banking Group plc announced on 30 July 2026 that it has elected to reclassify its Existing Preference Shares as Tier 2 Capital for regulatory purposes. This action activates the push-down mechanism in the terms of all outstanding Additional Tier 1 (AT1) Securities, including seven series with a combined principal amount exceeding £4 billion and $3.25 billion. Consequently, preference shareholders now rank senior to AT1 holders in a winding-up event, while AT1 securities remain pari passu among themselves. This restructuring ensures compliance with regulatory capital definitions by subordinating the AT1 instruments relative to the reclassified preference shares. Lloyds Banking Group plc operates as a major retail and commercial bank providing financial services in the United Kingdom.