The UK's Court of Appeal has granted Lloyds Banking Group permission to buy back special high-yielding bonds that the lender issued during the height of the financial crisis, a move that will save the bank around £1 billion ($1.52 billion).

Shortly after a taxpayer bailout, Lloyds in 2009 issued the so-called enhanced capital notes that convert into shares when the bank faces trouble. The bonds pay investors a greater coupon - averaging 10.3% - than normal, so-called senior bonds.