Lloyds TSB may sell dollar, euro-tranche securities

HONG KONG, May 9 (Reuters) - Lloyds TSB (LLOY.L: Quote, Profile, Research), Britain's fifth biggest bank, is looking to sell euro- and dollar-denominated fixed-rate hybrid perpetual securities, according to a term sheet seen by Reuters on Friday.

The issue could launch and price as early as next week, according to a source involved in the deal who was not authorised to talk publicly about the transaction.

Lloyds TSB mandated BNP Paribas BPN.PP, Lloyds TSB Corporate Markets, Merrill Lynch (MER.N: Quote, Profile, Research) and UBS (UBSN.VX: Quote, Profile, Research) as lead managers for the sale of the capital issues, the term sheet said.

The British lender hinted in February it was open to acquisition opportunities. Acting finance director Tim Tookey told reporters this week the bank's stance was unchanged, although he noted there were more opportunities emerging in the sector.

In its trading update on Tuesday, Lloyds also said it should deliver a good performance in the first half and had no need to follow rivals in asking investors for funds despite it taking a 387 million pound ($756.6 million) writedown.

The writedown on the value of assets tarnished by the credit crunch adds to a 280 million pound mark-down on assets last year, but is far less than those reported by most rivals, with the lender's core Tier 1 capital ratio at 7.4 percent at the end of last year.

Lloyds TSB is rated "AA" by Standard & Poor's Investors Services and "Aaa" by Moody's Investors Service. (Reporting by Rafael Nam; Editing by Anne Marie Roantree)