Lloyds Banking (LYG) is selling a signifcant risk transfer linked to around 500 million British pounds ($682.3 million) of commercial real estate loans, Bloomberg reported Thursday, according to people familiar with the matter.

The deal is part of the Lloyds' Wetherby significant risk transfer program, the report said, citing unnamed people familiar with the matter.

Risk transfers are credit-linked notes that allow banks to boost their solvency ratios and free up capital, the report said.

Lloyds did not immediately reply to MT Newswires' request for comment.

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