Bankers press UKFI to issue Lloyds and RBS convertible bonds
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Bankers are calling on UK Financial Investments to consider a convertible bond for Government-held stakes in both Lloyds and Royal Bank of Scotland ahead of next month’s election.
According to the Telegraph, a deal was initially meant to be six months away, however the strong performance of RBS and Lloyds shares has led to discussions over a potential transaction.
Both banks shares are now approaching the taxpayers break-even point. However an insider at UKFI, which controls the taxpayer’s stakes in the banks, told the Telegraph that it would be difficult to complete ahead of the May 6 general election date.
UKFI is looking at numerous option including convertible bond sales as well as a straightforward sale of the shares in the market.
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