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Lloyds in rights issue setback
THE government is preparing to tell Lloyds Banking Group it will not underwrite the bank’s planned rights issue, designed to help it exit the Asset Protection Scheme (APS).
While the government – which owns 43.5 per cent of Lloyds – is expected to take part in the cash call, Treasury officials are understood to have told the bank that it will not underwrite the issue.
The decision will make it harder for Lloyds to drum up support for the fundraising, although it is thought to have the support of several investment banks.