Sixteen Hong Kong banks have agreed on a deal to enable investors in structured products of the now bankrupt Lehman Brothers recover a majority of their investments.

Investors in Hong Kong lost nearly $2.5 billion on structured products, called 'minibonds' offered by U.S. investment bank Lehman Brothers, which collapsed in 2008.

A statement from receivers PricewaterhouseCoopers on Sunday said the agreement was to result in most of Lehman's minibond investors recovering over 80 percent of their original investment from the underlying collateral.

Distribution to minibond investors by the 16 banks, including Bank of China Hong Kong and Bank of Communications Hong Kong, is set for June this year.

Asian-focused lender Standard Chartered agreed to buy back HK$1.48 billion ($192 million) worth of equity-linked products guaranteed by Lehman, Hong Kong regulators said earlier this month.

(Reporting by Farah Master; Editing by Muralikumar Anantharaman)

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