Metro Bank Shares See Huge Drop As Bank Prepares Fundraising Drive

5th October 2023

Stock falls by 25% in early trading as high street lender seeks to raise £350m to shore up its balance sheet.

Metro Bank shares have plunged after news that the high street lender is seeking to raise hundreds of millions of pounds to shore up its balance sheet.

The bank - which was founded by the US billionaire Vernon Hill in 2010 - issued a market statement on Thursday, confirming that Metro was considering a "range of options", which would remove barriers to further lending and growth. Shares were down by 25%.

Options include asking investors to help refinance £350m worth of debt before it comes up for refinancing in 2025. However, it could also involve raising hundreds of millions of pounds through the sale of debt, shares, or assets. Assets sales are likely to include some of its mortgages.

Read the full story at The Guardian