Lloyds TSB launches 5.5 per cent bond for retail investors

Lloyds TSB Bank plc has launched a market leading, fixed rate corporate bond for retail investors. Following the success of the Group's first bond for retail investors in June 2010, the new Lloyds TSB Bank plc bond offers a fixed rate of 5.5 per cent per annum with a semi annual coupon.

The bond will be offered to investors from 8 March 2011 to 22 March 2011.  Fixed for five years and six 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 it has a maturity of more than five years at the time of purchase.

Andrew Hagger of Moneynet.co.uk said: "The appetite for corporate bonds appears to be growing and this competitively priced offer from Lloyds TSB will appeal to those looking to diversify their investment portfolio.  The option to shelter the bond in an ISA will be welcomed by savvy investors seeking to maximise the return on their cash."

Paul Killik, Senior Partner of Killik & Co and a Board Member of The Association of Private Client Investment Managers and Stockbrokers (APCIMS), said: "The retail bond market offers welcome relief to investors and savers struggling to find similar returns elsewhere.  We applaud companies like Lloyds that are helping to recreate an active bond market for private investors to put them on a par with institutional investors."

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 eligible for trading on the London Stock Exchange's dedicated electronic Order book for Retail Bonds (ORB).

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