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People walk past a Metro Bank in London, Britain, May 22, 2019. Hannah McKay
People walk past a Metro Bank in London, Britain, May 22, 2019. Hannah McKay
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Bondholders offer Metro Bank capital injection of 600 million pounds - FT

October 6th, 2023 | 14:59 PM MARKETS Deals 2

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By Reuters

A group of Metro Bank's (MTRO.L) bondholders contacted the British lender's board earlier this week, offering a 600 million pound ($729.12 million) capital injection, but the bank is yet to accept the offer, the Financial Times reported on Friday, citing two sources familiar with the matter.

Britain's best-known challenger bank sent a letter acknowledging the offer to representatives of the bondholders' consortium earlier in the day and the offer is still on the table, according to the report.

Metro Bank said in a statement on Thursday that it was considering its options, including a combination of equity and debt issuance, as well as refinancing and asset sales. It said that it met its minimum capital requirements and had not made a decision on fundraising plans.

The announcement came after press reports that the company was seeking to raise as much as 600 million pounds in debt and equity to bolster its finances.

The news wiped a fourth of its share value on Thursday, adding to the bank's troubles, which over the years have included accounting errors, leadership departures and delayed regulatory approval for key capital reliefs.

Metro Bank declined to comment on the FT report when contacted by Reuters.

The bank pared its losses on Friday, with its shares up 15.2%, to 44.05 pence, at 1417 GMT.

($1 = 0.8229 pounds)

  • Topic
  • METROBANK
  • CAPITAL/ (UPDATE 1)
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Previous article BlackRock's GIP nears $38 billion takeover of utility group AES, FT reports

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