The UK Government has offloaded a further one per cent stake in Lloyds Banking Group to City investors, reducing its holding in the bank to less than 11 per cent.
The latest sale means it has recouped £15.5 billion for the taxpayer to date, having spent around £20.5bn propping up the bank during the financial crisis.
It means the government now holds 10.97 per cent of the bank, down from around 25 per cent one year ago.
All sales are used to reduce the national debt.
Lloyds has already been in the spotlight this week after plans were unveiled to sell at least £2bn worth of shares to the public at a discounted price this spring.
There has been significant public interest, with more than 62,000 people signing up for information on buying shares on the day it was announced, according to Treasury sources.
On Thursday stockbroker Hargreaves Lansdown said more than 120,000 people have already registered their interest in buying discounted Lloyds shares at the investment firm.
On the latest share sale Chancellor George Osborne said: "It is fantastic news that we have sold more shares in Lloyds Bank, taking the total recovered for the taxpayer to £15.5bn.
"I am determined to build on this success by making Lloyds shares available to the public next spring, so that we can build a share-owning democracy and continue to reduce our national debt."
The public share sale will offer a five per cent discount on the market price along with an additional one share for every ten bought up to a maximum of £200.
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