Lloyd's has set the terms for the issue of £500m subordinated debt.
The issue, said Lloyd's, would consist of a sterling tranche of £300m which would carry a coupon of 6.875 %, being 207 basis points over the reference gilt and a second tranche of £300m with a coupon of 5.625%, 172 basis points
over the reference mid swap rate.
The sterling tranche would have a final maturity in November 2025 callable from November 2015 and the euro tranche will have a final maturity in November 2024 callable from November 2014.
Lloyd¹s chief executive Nick Prettejohn said: "The success of this issue will further support Lloyd¹s competitive position, by helping to create a long-term robust and flexible capital structure for the society."
The notes have been assigned a rating of BBB+ by Fitch. Standard and Poor's and AM Best have given preliminary ratings of BBB+ and bbb+.
All the ratings carry stable outlooks.
Lloyd¹s said settlement of the issue is expected on 17 November.
