Lloyds Banking Group announced that it would increase the size of its contingent capital issue on November 11, “as a result of high levels of investor interest”.

The bank will increase the maximum amount of Enhanced Capital Notes to be issued under the non-US exchange offer to £7bn from £5.5bn.

Existing hybrid bonds will be exchanged in accordance to a priority schedule. Lloyds will prioritise bonds that are most likely to be affected by the European Commission’s restrictions on coupon payments and redemptions. The increase in the size of the exchange offer means that more bonds are likely to be exchanged.