Lloyds Banking Group PLC — Capital/Financing Update 2018

Jul 17, 2018

MIFID II product governance / Professional investors and ECPs only target market: Solely for the purposes of each manufacturer’s product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturers’ target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers’ target market assessment) and determining appropriate distribution channels.

PROHIBITION OF SALES TO EEA RETAIL INVESTORS: The Notes are not intended to be offered, sold or otherwise made available to and 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 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 (as amended, 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 16 July 2018

Lloyds Bank plc

Issue of ZAR 50,000,000 Fixed Rate Notes due July 2025

under the Global Medium Term Note Programme

PART A — CONTRACTUAL TERMS

These Final Terms constitute Issue Terms for the purposes of the Base General Conditions. Terms used herein shall be deemed to be defined as such for the purposes of the Base Conditions set forth in the Prospectus dated 17 April 2018 and the supplemental prospectus dated 26 April 2018 which together constitute a base prospectus for the purposes of 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 Bank and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Prospectus as so supplemented. The Prospectus and the supplemental prospectus are available for viewing at www.londonstockexchange.com/exchange/news/market-news/market-news-home.html and copies may be obtained from Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN.

The expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State) and includes any relevant implementing measure in the Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU.

1. Issuer: Lloyds Bank plc (the “Bank”)
2. (i) Series Number: WMTN0266

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(ii) Tranche Number
1

3 Specified Currency
South African Rand (“ZAR”)

4 Aggregate Nominal Amount
(i) Series
ZAR 50,000,000
(ii) Tranche
ZAR 50,000,000

5 Issue Price
100 per cent. of the Aggregate Nominal Amount

6 (i) Specified Denominations:
ZAR 2,000,000 and integral multiples of ZAR 1,000,000 in excess thereof up to and including ZAR 3,000,000. No Notes in definitive form will be issued with a domination above ZAR 3,000,000
(ii) Calculation Amount:
ZAR 1,000,000

7 (i) Issue Date:
18 July 2018
(ii) Trade Date:
11 July 2018

8 Maturity Date
18 July 2025

9 Business Day Convention
Following Business Day Convention (Unadjusted)

10 Business Centre(s)
London and Johannesburg

11 Calculation Agent
Citibank, N.A., London Branch

12 Alternative Currency Equivalent
Not Applicable

13 Synthetic Currency Asset Conditions
Not Applicable

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

14 Fixed Rate Note Provisions
(i) Interest Commencement Date:
18 July 2018
(ii) Interest Period Date(s):
Each Interest Payment Date
(iii) Interest Payment Date(s):
18 July in each year, from and including 18 July 2019, to and including the Maturity Date
(iv) Rate(s) of Interest:
9.62 per cent. per annum payable annually in arrear
(v) Fixed Coupon Amount(s):
ZAR 96,200.00 per Calculation Amount
(vi) Broken Amount(s):
Not Applicable
(vii) Day Count Fraction:
Actual/Actual ICMA: Determination Dates:
18 July in each year
(viii) Business Day Convention:
Following Business Day Convention (Unadjusted)

15 Floating Rate Note Provisions
Not Applicable

16 Zero Coupon Note Provisions
Not Applicable

17 Index Linked Interest Provisions
Not Applicable

18 Inflation Linked Interest Provisions
Not Applicable

19 Currency Linked Interest Provisions
Not Applicable

20 Commodity Linked Interest Provisions
Not Applicable

21 Rate Linked Interest Provisions
Not Applicable

22 Multi-Asset Basket Linked Interest
Not Applicable

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Provisions

23 Structured Floating Rate Coupon Not Applicable
24 Inverse Floating Rate Coupon Not Applicable
25 Fixed Rate Step-Up/Step-Down Coupon Not Applicable
26 Fixed to Floating Coupon Not Applicable
27 Floating to Fixed Coupon Not Applicable
28 Fixed to Floating Switchable Coupon Not Applicable
29 Floating to Fixed Switchable Coupon Not Applicable
30 Fixed Rate Range Accrual Coupon Not Applicable
31 Floating Rate Range Accrual Coupon Not Applicable
32 Fixed Rate Dual Range Accrual Coupon Not Applicable
33 Floating Rate Dual Range Accrual Coupon Not Applicable
34 Digital Coupon Not Applicable
35 Inflation-Linked Coupon Not Applicable
36 Inflation Protected Coupon Not Applicable
37 Performance Coupon Not Applicable
38 Annualised Performance Coupon Not Applicable

PROVISIONS RELATING TO REDEMPTION

39 Put/Call Options Not Applicable
40 Call Option Not Applicable
41 Put Option Not Applicable
42 Target Auto Redemption Not Applicable
43 Autocall Not Applicable
44 Final Redemption Amount ZAR 1,000,000 per Calculation Amount
45 Early Redemption Amount
Early Redemption Amount(s): Par
46 Unwind Costs: Applicable
47 Expenses Not Applicable
48 Index Linked Redemption Provisions Not Applicable
49 Inflation Protected Redemption Provisions Not Applicable
50 Currency Linked Redemption Provisions Not Applicable
51 Commodity Linked Redemption Provisions Not Applicable
52 Rate Linked Redemption Provisions Not Applicable
53 Multi-Asset Basket Linked Not Applicable

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Redemption Provisions

54 Performance Redemption Not Applicable
55 Performance Plus Downside Redemption Not Applicable
56 Performance Plus Conditional Downside Redemption Not Applicable
57 Absolute Performance Redemption Not Applicable
58 Reverse Convertible Redemption Not Applicable
59 Reverse Convertible Plus Conditional Downside Redemption Not Applicable
60 Inflation Protected Redemption Not Applicable
61 Dual Currency Redemption Not Applicable

GENERAL PROVISIONS APPLICABLE TO THE NOTES

62 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
63 New Global Note No
64 Additional Disruption Events Not Applicable
65 Talons for future Coupons or Receipts to be attached to Definitive Notes (and dates on which such Talons mature) Not Applicable
66 Details relating to Instalment Notes: amount of each instalment, date on which each payment is to be made Not Applicable

DISTRIBUTION

67 U.S. Selling Restrictions Reg S Category 2; TEFRA D

LISTING AND ADMISSION TO TRADING APPLICATION

These Final Terms comprise the final terms required for issue and admission to trading of the Notes described herein pursuant to the Global Medium Term Note Programme of Lloyds Bank plc

Signed on behalf of the Bank:

By:

Duly authorised

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PART B — OTHER INFORMATION

1. LISTING AND ADMISSION TO TRADING
   (i) Listing and admission to trading: Application is expected to be made by the Issuer (or on its behalf) for the Notes to be listed on the Official List of the UK Listing Authority and to be admitted to trading on the regulated market of the London Stock Exchange with effect from the Issue Date.
   (ii) Estimate of total expenses related to admission to trading: £375 + VAT

2. RATING
   Ratings: The Notes to be issued have been rated:
   S&P: A+

3. INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE
   Save as discussed in “Selling Restrictions”, so far as the Issuer is aware, no person involved in the offer of the Notes has an interest material to the offer.

4. REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES
   (i) Reasons for the offer: See ‘Use of Proceeds’ wording in the Prospectus
   (ii) Estimated net proceeds: Not Applicable
   (iii) Estimated total expenses: Not Applicable

5. Fixed Rate Notes only — YIELD
   Indication of yield
   The yield is calculated at the Issue Date on the basis of the Issue Price, using the formula below.
   $$P = \frac{C}{r} (1 - (1 + r)^{-n}) + A(1 + r)^{-n}$$
   Where:
   “P” is the Issue Price of the Notes;
   “C” is the annualised Interest Amount;
   “A” is the nominal amount of Notes due on redemption;
   “n” is time to maturity in years; and
   “r” is the annualised yield.

Calculated using the method above, the yield is 9.62 per cent. per annum on the Issue Date. As set out above, the yield is calculated at the Issue Date on the basis of the Issue Price. It is not an indication of future yield.

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6 OPERATIONAL INFORMATION

ISIN XS1857275645
Common Code: 185727564
CFI: DTZXFB
FISN: LLOYDS BANK PLC/ZERO CPNEMTN 202507
Swiss Securities Number Not Applicable
(Valorenummer):
WKN Number (Wertpapierkennnummer): Not Applicable
Any clearing system(s) other than Not Applicable
Euroclear Bank SA/NV and Clearstream Banking, S.A. and the relevant identification number(s):
Delivery: Delivery against payment
Names and addresses of additional Paying Agent(s) (if any): Not Applicable
Intended to be held in a manner which would allow Eurosystem eligibility: No
Relevant Benchmark[s]: Not Applicable

7 ADDITIONAL US FEDERAL INCOME TAX CONSIDERATIONS
The Notes are not Specified ELIs for purposes of Section 871(m) of the U.S. Internal Revenue Code of 1986.

8 INDEX DISCLAIMER Not Applicable