Lloyds TSB launches 5.375 per cent corporate bond

Lloyds TSB has launched a fixed rate corporate bond, specifically for retail investors. The Lloyds TSB Bank plc bond is the first corporate bond for retail investors to be issued under Lloyds Banking Group.  It will give individuals the opportunity to invest in a product which until recently was only accessible to institutional investors.

The new bond offers investors a fixed rate of 5.375% per annum with a semi-annual coupon.  Fixed for 5 years and 3 months, the bond offers investors full capital protection at maturity.  It can be bought in a minimum unit of £1000 and in increments of £100 thereafter.  The bond can be held as a direct investment, in a SIPP or ISA, providing the bond has a maturity of more than five years at the time of purchase.

Retail investors can buy or sell at any time during the life of the bond through a network of retail brokers.  The bond will be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange.  It will be priced on Bondscape and will be eligible for the London Stock Exchange's dedicated electronic Order book for Retail Bonds (ORB).  Launched in February, ORB allows retail investors easier access to trading bonds.

Richard Shrimpton, Head of Capital Markets Issuance, Lloyds Banking Group, said: "We are delighted to offer retail investors access to a product that guarantees a great rate of return without locking away capital.  Working with a network of retail brokers, we have designed the Lloyds TSB Bank plc bond with the changing needs of investors in mind."

Paul Killik, Senior Partner of Killik & Co and a Board Member of The Association of Private Client Investment Managers and Stockbrokers (APCIMS), said: "We have been working hard with members to develop the same kind of transparency, understanding and ease of execution for private investors in the retail bond market as there currently is in share dealing.  The launch of Lloyds' new bond marks a great step forward in opening up this market."

Private investors should seek independent financial advice.  Investors can find out more about the Lloyds TSB Bank plc bond through a stockbroker.  The bond will not be available in Lloyds TSB, Halifax or Bank of Scotland branches.