Lloyds raises £1.25bn in bonds

Lloyds TSB took advantage of a degree of market optimism to raise around six per cent of the group’s 2012 funding needs yesterday. It sold €1.35bn (£1bn) in covered bonds, of an annual target of £15-20bn for Lloyds Banking Group. The bank will pay a 3.5 per cent yield on the five-year bonds, which are the most secure kind of debt a firm can issue. The market for bank debt went into deep freeze at the close of last year, with a major European bank yet to test the appetite for unsecured bonds.