Lloyds Banking To Sell Portfolio Of European Commercial Real Estate Loans

(RTTNews) - British banking major Lloyds Banking Group Plc (LYG, LLOY.L) reported agreeing to the sale of a portfolio of European commercial real estate loans to MELF S.à r.l, an entity affiliated with Marathon Asset Management LP, for around 280 million euros cash, or about 235 million pounds at current exchange rates. This sale transaction is a part of the Group's strategy to reduce its non-core run-off portfolio.

The sale proceeds would be used for general corporate purposes and the transaction is not likely to have a material effect on the Group, including on its capital position, due to existing provisions taken against these assets. The sale may close in the second quarter of 2014.

In a separate press release, the Group reported the results of its offers for holders of certain series of its Sterling and Euro Enhanced Capital Notes or ECNs to exchange them for new Additional Tier 1 or AT1 securities. Given substantial demand, the equivalent of 4.0 billion pounds of ECNs have been accepted into the offers. This would result in the issue of the equivalent of 4.35 billion pounds of new AT1 securities, nearly 0.35 billion pounds more than the amount expected at the commencement of the offers. The exchange offers' settlement is likely to occur on or around 1 April 2014.

Additionally, Lloyds Banking Group announced the commencement of the submission period for its tender offer to eligible retail holders to sell their Sterling-denominated ECNs for cash. The offer would remain open until 4.00pm London time on April 16, 2014.