Expect a fall tomorrow8 Oct 2023 22:36
Metro Bank has struck a deal with investors after a weekend of negotiations to give the UK challenger bank some breathing space and help fill a capital hole that had prompted discussions with regulators.
The package includes a £325mn capital raise and £600mn of debt refinancing, and will involve Metro Bank’s largest shareholder — Columbian billionaire Jaime Gilinski Bacal — contributing an additional £102mn.
Metro’s board has been locked in talks with existing investors over the past few days and had also been gauging interest from some of the UK’s largest banks in relation to possible asset sales or a potential takeover.
The Financial Times reported on Sunday that rival lenders NatWest, Santander and Lloyds Banking Group were all considering bids for some of Metro’s assets.