Shares in Lloyds Banking (LLOY) enjoyed a 6 per cent bump after the UK Supreme Court ruled in favour of the bank's decision to redeem £3.3bn of enhanced capital notes at a below par price. The UK's highest court found the bank could call in the bonds early at face value.
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Investors had been earning as much as 16 per cent interest a year on the bonds. Lloyds argued the bonds no longer counted towards its capital reserves to meet regulatory requirements. This triggered a clause in the terms, which allowed the bonds' redemption, the banking group argued.