China Industrial Securities International Financial Group Limited (CISI FIN, 06058) reported that its wholly owned subsidiary CISI Investment Limited purchased US$13.00 million principal amount of Lloyds Banking Group plc’s 8% fixed-rate Additional Tier-1 perpetual subordinated contingent convertible securities between 28 January 2026 and 18 March 2026.

The securities were bought on the open market for an aggregate consideration of US$14.22 million (HK$111.65 million), funded entirely by internal resources. Principal translates to approximately HK$102.05 million, using an illustrative exchange rate of US$1 = HK$7.85.

Including two earlier tranches completed on 28 January and 2 March 2026—each involving US$5.00 million principal—the Group has accumulated US$23.00 million principal of the Lloyds AT1 notes since the start of the year, at a total cash outlay of US$25.18 million (HK$197.66 million).

Under Hong Kong Listing Rule 14.07, the latest purchase alone stays below the 5% threshold, but when aggregated with the previous acquisitions one of the percentage ratios exceeds 5% yet remains under 25%. Consequently, the deal is deemed a discloseable transaction that requires public reporting and announcement, but no shareholder approval.

Management stated that the acquisition aligns with the Group’s strategy of diversifying its investment portfolio and generating stable returns within an acceptable risk profile.