- Metro Bank Holdings Plc has successfully secured a substantial £925 million ($1.1 billion) financing package, a significant development that involves a 40% reduction in the value of certain bonds held by investors. This transaction also results in Colombian financier Jaime Gilinski assuming a controlling stake in the bank.
- This agreement comes as a much-needed relief for the British retail and commercial bank following a tumultuous week characterized by volatile fluctuations in its share price. During this period, consulting firm EY approached several lenders to solicit offers. The financing package comprises two key components, as confirmed by the bank in a statement, aligning with an earlier Bloomberg report. It encompasses a £325 million capital injection and £600 million of debt refinancing.
Why it matters
The fresh capital infusion primarily originates from existing investors and includes £150 million of new equity, offered at a price approximately one-third lower than the closing price on the preceding Friday. Additionally, there is £175 million in new bail-in bonds maturing in 2028. Following this development, Metro Bank's shares experienced an 11% increase.