Lloyds TSB Bank (Lloyds) has opened an exchange offer for the A$600 million (US$604.5 million) of outstanding lower tier two notes originally issued in 2007 by HBOS, as part of a attempt to roll all its tier two capital securities with 2012 call dates. While the bank has not ruled out a call on any notes that are not exchanged it also suggests that a 2012 call is unlikely.