Metro Bank announces £350m fundraising to bolster finances

Vernon Hill and Duffy

Image caption

Metro Bank chair Vernon Hill, pictured with dog Duffy, founded the bank in 2010

Metro Bank says it has begun the process of raising £350m from shareholders to bolster its finances, quelling fears over its future.

It follows an accounting error in January which left the bank without the capital it needed to grow.

Existing shareholders still need to approve the deal, but the firm is likely to raise the money it needs.

Shares in Metro Bank have fallen about 75% this year, wiping about £1.5bn off its market value.

The firm said it had priced its shares at 500p – a 36p discount to its closing share price on Thursday.

The bank – which has 67 branches in London and the South East – is selling new shares to new and existing investors.

It revealed in January that it had underestimated the risk level of some of its commercial loans, meaning it didn’t have the required shock-absorbing capital it needed to support a number of its business loans.

The funds it raises are aimed at making up for the shortfall.


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