Part-nationalised British bank Lloyds has raised £170 million (€203 million) through a new share issue, Lloyds said today, in a move that helps shore up its capital base.

Lloyds, which is 40 per cent owned by the British government after a state bailout in 2008, said it had issued 479.3 million new shares at a subscription price of 35.47 pence per share.

Lloyds reported a £3.5 billion loss for 2011 in February, with its earnings hurt by a £3.2 billion hit to compensate customers for the mis-selling of payment protection insurance, which typically covers loan repayments if customers fall ill or lose their jobs.

Reuters