Lloyds Banking Group PLC — Capital/Financing Update 2017

Sep 18, 2017

PROHIBITION OF SALES TO EEA RETAIL INVESTORS: The Notes are not intended, from 1 January 2018, to be offered, sold or otherwise made available to and, with effect from such date, should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU ("MiFID II"); or (ii) a customer within the meaning of Directive 2002/92/EC ("IMD"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently, no key information document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPS Regulation.

Final Terms dated 8 September 2017

Lloyds Banking Group plc

Issue of €750,000,000 1.500 per cent. Notes due 2027 under the £25,000,000,000 Euro Medium Term Note Programme

PART A — CONTRACTUAL TERMS

Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the "Conditions") contained in the Trust Deed dated 30 March 2017 and set forth in the Prospectus dated 30 March 2017 and the supplemental Prospectuses dated 27 April 2017 and 27 July 2017 which together constitute a base prospectus for the purposes of the Prospectus Directive (Directive 2003/71/EC) and amendments thereto, to the extent that such amendments have been implemented in the relevant Member State of the European Economic Area (the "Prospectus Directive"). This document constitutes the Final Terms of the Notes described herein for the purposes of Article 5.4 of the Prospectus Directive and must be read in conjunction with such Prospectus as so supplemented. Full information on the Company and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Prospectus. The Prospectus and the supplemental Prospectuses are available for viewing at www.londonstockexchange.com/exchange/news/market-news/market-news-home.html and copies may be obtained from Lloyds Banking Group plc, The Mound, Edinburgh EH1 1YZ.

1	Issuer:	Lloyds Banking Group plc (the "Company")
2	(i) Series Number:	LBG0002
	(ii) Tranche Number:	1
3	Specified Currency:	Euro ("€")
4	Aggregate Nominal Amount:
	(i) Series:	€750,000,000
	(ii) Tranche:	€750,000,000
5	Issue Price:	99.274 per cent. of the Aggregate Nominal Amount
6	(i) Specified Denominations:	€100,000 and integral multiples of €1,000 in excess thereof up to and including €199,000. No Notes in definitive form will be issued with a denomination above €199,000

	(ii) Calculation Amount:	€1,000
7	(i) Issue Date:	12 September 2017
	(ii) Interest Commencement Date:	Issue Date
8	Maturity Date:	12 September 2027
9	Interest Basis:	1.500 per cent. Fixed Rate
10	Redemption Basis:	Redemption at par
11	Change of Interest or Redemption/Payment Basis:	Not Applicable
12	Alternative Currency Equivalent:	Not Applicable
13	Put/Call Options:	Not Applicable
14	Status of the Notes:	Senior
15	Senior Notes Waiver of Set-off:	Applicable
16	Restricted Events of Default:	Applicable

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

17	Fixed Rate Note Provisions	Applicable
	(i) Rate of Interest:	1.500 per cent. per annum payable annually in arrear
	(ii) Interest Payment Date(s):	12 September in each year from and including 12 September 2018
	(iii) Fixed Coupon Amount:	€15.00 per Calculation Amount
	(iv) Broken Amount(s):	Not Applicable
	(v) Day Count Fraction:	Actual/Actual ICMA
	(vi) Determination Dates:	12 September in each year
	(vii) Business Day Convention:	Not Applicable
18	Fixed Rate Reset Note Provisions	Not Applicable
19	Floating Rate Note Provisions	Not Applicable
20	Zero Coupon Note Provisions	Not Applicable
PROVISIONS RELATING TO REDEMPTION
21	Call Option	Not Applicable
22	Put Option	Not Applicable

• 23 Capital Disqualification Event Call Not Applicable
• 24 Loss Absorption Disqualification Event Call Applicable

	Loss Absorption Disqualification Event - Partial Exclusion:	Applicable
25	Final Redemption Amount	$€1,000$ per Calculation Amount
26	Early Redemption Amount
	Early Redemption Amount(s) payable on redemption for taxation reasons, following a Capital Disqualification Event or on event of default or other early redemption:	$E1,000$ per Calculation Amount
27	Capital Disqualification Event Substitution and Variation	Not Applicable
GENERAL PROVISIONS APPLICABLE TO THE NOTES
28	Form of Notes:	Bearer Notes:
		Temporary Global Note exchangeable for a Permanent Global Note which is exchangeable for Definitive Notes in the limited circumstances specified in the Permanent Global Note
29	New Global Note:	Yes
30	Additional Financial Centre(s) or other special provisions relating to payment dates:	London and TARGET
31	Talons for future Coupons to be attached to Definitive Notes (and	No
	dates on which such Talons mature):
	DISTRIBUTION

Signed on behalf of the Company:

$\ddagger$ O

By: PETER GREEN
Duly authorised

PART B – OTHER INFORMATION

1	LISTING
	(i) Listing:	London
	(ii) Admission to trading:	Application is expected to be made for the Notes to be admitted to trading on the London Stock Exchange's Regulated Market with effect from 12 September 2017.
	(iii) Estimate of total expenses related to admission to trading:	£4,380
2	RATINGS
	Ratings:	The Notes to be issued have been rated:
		S & P: BBB+
		Moody's: Baa1
		Fitch: A+
3		INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

Save as discussed in "Subscription and Sale", so far as the Company is aware, no person involved in the issue of the Notes has an interest material to the issue.

4	Fixed Rate Notes only — YIELD
	Indication of yield:	1.579 per cent. per annum
5	OPERATIONAL INFORMATION
	ISIN Code:	XS1681050610
	Common Code:	168105061
	Any clearing system(s) other than Euroclear Bank SA/NV and Clearstream Banking, S.A. and the relevant identification number(s):	Not Applicable
	Delivery:	Delivery against payment
	Names and addresses of additional Paying Agent(s) (if any):	Not Applicable
	Name and address of Calculation Agent:	Citibank, N.A., London Branch Canada Square Canary Wharf London E14 5LB