Lloyds Banking Group PLC, the U.K.'s biggest mortgage lender, is issuing $4.7 billion of bonds secured by home loans in the country's first public sale of the debt in more than a year.

The notes will be issued through a vehicle called Permanent Master Trust 2009-1, the London company said Monday.

The market for bonds backed by real estate, consumer debt and corporate loans is starting to reopen. Last week the supermarket chain Tesco PLC issued bonds backed by property leases, and Volkswagen AG is planning to sell debt secured by car loans in the first deal of its kind for a year.

"It was always going to be either residential mortgage or auto loan-backed bonds that restarted the asset-backed securities market," said David Watts, a London-based strategist at Creditsights Inc. "It looks like Permanent might get in there first ahead of Volkswagen."

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