Metro Bank announces successful rescue package

Asset finance lender Metro Bank has successfully secured fresh financing of £925m through debt and funding to strengthen its balance sheet and accelerate its earnings potential.

Daniel Frumkin, Chief Executive Officer at Metro Bank commented that, “Today’s announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years.”

The lender had raised £325m in new funding, comprising £150m of new equity and £175m of new MREL issuance, alongside £600m of debt refinancing.

Metro Bank’s largest shareholder, Spaldy Investments Limited, who is contributing £102m, will become the controlling shareholder of the bank upon completion of the transaction.

Last week, Sky News reported that the high street bank was seeking to raise new capital up to £600m to bolster its finances, with shares in the challenger bank plunging when news of the funding plan was made public.