Metro Bank to raise £350m

Metro Bank to raise £350m

Metro Bank has commenced final talks with shareholders and new investors to raise £350m of equity capital.  

The challenger bank announced the £350m share placement in February and in a statement today (May 13) said the plans were now "well advanced" to "support its growth". 

The bank said: "Metro Bank has commenced final discussions with existing shareholders and new investors, and the feedback continues to be positive."

It added: "The company intends to respect the principles of pre-emption as far as practicable via the allocation process."

The equity raise is expected to complete by the end of Q2 2019, with the bank stating it will update the market "in due course". 

This morning the Financial Times reported Metro was also preparing to sell more than £1bn worth of loans amid an accounting misreporting error discovered earlier this year, which included over-reporting its capital ratios. 

In February Metro Bank was awarded £120m in funding to help meet the needs of small and medium enterprises, granted from a £775m fund created as a condition of Royal Bank of Scotland accepting a £45bn bailout during the financial crisis.