Lloyds rights issue hailed a success

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Lloyds Banking Group today said its £13.5 billion cash call had been a success after shareholders took up more than 95 per cent of the shares on offer.

The result of the rights issue is better than a previous fundraising in June of this year, when 13 per cent of the offer was not taken up by investors.

The issue formed part of a £22.5 billion plan to strengthen the bank's balance sheet and allow it to escape the government's asset protection scheme.

The Treasury, which owns 43 per cent of Lloyds after last year's banking bailouts, has taken up its rights to new Lloyds shares.



Today's update from Lloyds showed that investors subscribed or sold the rights to 95.31 per cent of the shares on offer. The remainder of the stock is to be sold by the rights issue underwriters in the open market.

Chief executive Eric Daniels said: "I would like to thank our shareholders for their considerable support for our capital raising programme.

"Our focus remains on delivering on our plans to become the UK's leading financial services company, which we believe will result in significant benefits for all our shareholders."

The average Lloyds private shareholder holds 740 shares and was asked to stump up £336.67 to maintain their stake. The taxpayer has paid £5.7 billion to take part.

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