Metro Bank agrees rescue deal with investors9 Oct 2023 05:41
The embattled high street lender Metro Bank has agreed a rescue deal with investors to shore up its balance sheet after a weekend of negotiations.
The bank announced late on Sunday that it had secured a £325m capital raise, including £150m of new equity from shareholders, and £600m of debt refinancing.
The equity raise will be led by its largest shareholder, the Colombian billionaire Jaime Gilinski Bacal’s Spaldy Investments, which will contribute £102m. His stake will rise from 9% to 53%, making him the controlling shareholder.
Metro is also in discussions about selling up to £3bn of residential mortgages.
The Bank of England’s regulatory arm, the Prudential Regulation Authority, is understood to have been approaching a number of big lenders in the past few days, including NatWest and JP Morgan Chase, to see if they had any interest in buying Metro.
A spokesperson for the PRA said on Sunday evening: “The Prudential Regulation Authority welcomes the steps taken by Metro Bank to strengthen its capital position.”
Daniel Frumkin, Metro’s chief executive, said: “Today’s announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years.”
Bacal said: “I have been an active investor in Metro Bank since 2019. The opportunity to become the Bank’s major shareholder is driven by my belief in the need for physical and digital banking underpinned by a focus on exceptional customer service. I believe that the package announced today enables the Bank to pursue growth and build on the foundational work undertaken over the past three years.”
https://www.theguardian.com/business/2023/oct/08/bank-of-england-sounds-out-buyers-for-metro-bank-including-natwest
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