Lloyds Bank has won a court case against investors who claimed the bank was not entitled to repurchase enhanced capital note (ECN) bonds for their original issue price. The move had originally been aimed at saving five years' interest - £1bn - but the delay in redeeming the notes means that is likely to be reduced to four years. The Supreme Court decision could save Lloyds £1bn on interest payments over the next four years. In its judgement, Lord Justice Pitchford said that while it is possible to argue that an ECN bond issued by another company should be treated as being of equal value with one issued by Lloyds,
Lloyds Bank has won a court case against investors who claimed the bank was not entitled to repurchase enhanced capital note (ECN) bonds for their original issue price. The Supreme Court decision could save Lloyds £1bn on interest payments over the next four years. In its judgement, Lord Justice Pitchford said that while it is possible to argue that an ECN bond issued by another company should be treated as being of equal value with one issued by Lloyds,