Sale of £3.3bn in Lloyds" shares seen as vote of confidence in UK The Lloyds sale happens five years after its disastrous takeover of HBOS sparked a bailout The UK government on Monday launched the reprivatisation of Lloyds Banking Group with the sale of £3.3bn of shares in the bank, marking a momentous turnround in the UK's fortunes after the financial crisis. Five years to the day since Lloyds" disastrous takeover of HBOS, which led to its £21bn bailout, the Treasury is set to make a profit of at least £60m on the sale of 6 per cent of the bank. The sale - the UK's second-biggest share placing ever - is a milestone in Lloyds" recovery, which has gathered pace in the past year as chief executive, António Horta-Osório, has steered the group back into profit. It is also a potent symbol of the UK's return to health after a catastrophic failure in financial markets brought the banking industry to the brink of collapse in October 2008. Lloyds Banking Group share price (pence) Bankers in capital markets involved in the transaction reported a swift take-up of Lloyds shares. One US hedge fund was said to have submitted a $1bn order. "Investors are making a call on the UK," said one banker on the deal. This level of demand would not be there if people weren't confident in the UK's broader economic recovery. One senior Lloyds executive said the sale had "given us our pride back." "It's a major milestone," he said. "After getting the bank in profit and helping to support the UK economic recovery, getting taxpayers" money back was a key target." For Mr Horta-Osório, the sale could also trigger a windfall. Providing the share price stays for a month above 73.6p, the average price paid by the government for its stake, he will qualify to receive last year's £1.5m bonus award, albeit after five years. Lloyds" shares have soared more than 90 per cent in the past 12 months, racing past the government's 73.6p "in-price" for the first time in three years last month and fuelling expectations that the government would start the reprivatisation process. The first tranche of Lloyds shares are expected to be sold at least 75p - a 2 per cent discount to Monday's closing price of 77.36p but 1.4 per cent, or £60m, above the average price the government paid. The initial placement is expected to be followed by a second sale - potentially involving retail investors - in the first half of 2014, paving the way for the government fully to exit Lloyds by the end of next year. That timetable is in stark contrast to Royal Bank of Scotland, which is still years away from starting reprivatisation. Around 4.3bn of Lloyds shares will be allocated to institutional investors overnight on Monday, with bankers expecting a mix of largely UK and US investors. Four of Lloyds" largest investors - Lansdowne, Northern Cross, Harris Associates and Norges - were expected to end up with substantially increased stakes. A Treasury spokesperson said: "UK Financial Investments today advised the chancellor it would be appropriate to begin the process to sell part of the government's shareholding in the Lloyds Banking Group. The chancellor agrees with that advice and has authorised the process to begin. George Osborne, UK chancellor, said: "Five years ago the previous government used taxpayers" money to bail out the banks and I've been absolutely determined to get that money back for taxpayers so we can pay down debt. Today we have started to do that and it is another step in the long journey to repair what went so badly wrong in the British economy. Mr Horta-Osório said: "I am pleased that the government has been able to begin the process of selling its stake, and give taxpayers the opportunity to get their money back. I believe this reflects the hard work undertaken over the past two years to make Lloyds a safe and profitable bank that is focused on supporting the UK economy.