Europe awards: debt and equity-linked

Author: | Published: 18 Mar 2010

Deals of the year

L-R: Daniel Fletcher of Allen & Overy, Stephen Griffin of Linklaters, Donald Guiney of Freshfields Bruckhaus Deringer

WINNER: Lloyds ECNs

Lloyds’ enhanced capital notes (ECNs) launched both a new class of securities and a global regulatory debate on contingent capital instruments. The ECNs intuitively address the need for a bank to have a countercyclical capital buffer by converting to equity once capital reserves dip below a pre-determined threshold.

The structuring of the securities overcame EU state aid provisions, and incorporated them into a waterfall structure that allowed existing holders to choose whether to take the ECNs, ordinary shares or a combination of the two.

Allen & Overy - dealer managers, ECN trustee
Freshfields Bruckhaus Deringer - joint global-coordinators, joint sponsors and dealer managers on the rights issue part of the capital raising
Linklaters - Lloyds TSB and Lloyds Banking Group
Maclay Murray Spens - Lloyds (Scottish law)

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BPCE exchange offer
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