Lloyds Banking Group Swaps $760 Mln Bonds For 537 Mln Shares

28th Jun 2010 10:34

LONDON (Dow Jones)--Lloyds Banking Group PLC (LYG) Monday said bondholders have agreed to exchange $760 million in upper Tier 2 bonds for 537.2 million new shares, as part of the bank's effort to cut its debt costs. Analysts estimate the bond exchanges, which were made at a discount to face value, will result in a gain of around GBP200 million for Lloyds, helping lift its core Tier 1 ratio by about 15.5 basis points, to around 8.1%. Lloyds shares were up 1 pence at 0930 GMT, at 55 pence. -By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; [email protected] (END) Dow Jones Newswires June 28, 2010 05:34 ET (09:34 GMT)