UKFI urged to issue Lloyds and RBS convertible bonds - papers

Bankers are pressing the UK Financial Investments to consider a convertible bond for Government held stakes in Lloyds and Royal Bank of Scotland ahead of next month's election.

The Telegraph reports a deal, which could return billions of pounds to the taxpayer, had been thought to be at least six months away but the strong performance of RBS and Lloyds shares in recent weeks has led to discussions over a possible transaction. Lloyds' shares, at 64.49p, are now trading close to the average price that the government paid for its 41% stake. Shares in RBS, 84% owned by the state, are also edging close to the taxpayer's break-even point. The shares closed last night at 44.95p. See story...