UKFI, which manages the governments stake, will decide the bookrunner group. It has asked banks to submit their proposals by July 8. Lloyds executives are also likely to have a big say in which banks get the key roles.
It seems unlikely Barclays or HSBC will be chosen for the institutional sale, given their positions as rival UK retail banks, although their UK distribution capabilities will put them firmly in the frame for the later retail-targeted tranches.
Lloyds Banking Groups two corporate brokers Bank of America Merrill Lynch and UBS will expect their close relationship with the bank to secure them senior roles.
Deutsche Bank and Credit Suisse have been key advisers to UKFI for some time, which gives them a head start in the race.
The two leading US investment banks, Morgan Stanley and Goldman Sachs, will also hope to be involved. Morgan Stanley has played a pivotal role in advising Lloyds on the sales of its non-core asset portfolio, while Goldmans appeal to the UK authorities was demonstrated a month ago when it was appointed global coordinator for the privatization of Royal Mail, alongside UBS.