Lloyds bondholders have won their attempt to stop the bank buying back their investments and cutting off generous interest payments.
A High Court judge has ruled that the bank is not entitled to redeem the bonds early at face or "par" value.
The ruling follows an admission by the bank that it had made an error in the original drafting of the bonds' terms and conditions.
Investors agreed to swap holdings of other assets such as building society "Pibs" during the financial crisis as part of attempts to bolster the bank's financial position. In return they were promised interest rates of as much as 16pc until redemption at various dates between 2019 and 2029.http://www.telegraph.co.uk/finance/personalfinance/investing/bonds/11648034/Lloyds-bonds-victory-for-investors-as-court-rules-against-compulsory-repurchase.html