Lloyds Exchanges Yen Bond For 405M Shares; To Book Gain

29th Jun 2010 10:46

LONDON (Dow Jones)--Lloyds Banking Group PLC (LYG) Tuesday said it is exchanging a yen-denominated bond for 405.4 million shares, in its latest effort to book gains by buying back debt for less than face value. Lloyds Monday said it was exchanging a set of dollar-denominated bonds for shares, resulting in an estimated gain of around GBP200 million. Ian Gordon, an analyst at Exane BNP Paribas, said Tuesday's transaction will likely result in a further GBP93 million gain--about GBP20 million more than had been expected when Lloyds gave guidance about the offer two weeks ago. At 0925 GMT, Lloyds shares were up 0.21 pence, or 0.38%, at 56 pence, on a broadly lower London market. The transactions have resulted in a slight reduction in the percentage of the bank's capital held by the U.K. government because of the share dilution. It has dropped to just under 41%, from just above 41% before the bond exchanges. -By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; [email protected] (END) Dow Jones Newswires June 29, 2010 05:46 ET (09:46 GMT)