Metro Bank Secures Capital and New Investor Deal to Stabilize Finances

1 min read
Source: Reuters.com
Metro Bank Secures Capital and New Investor Deal to Stabilize Finances
Photo: Reuters.com
TL;DR

Metro Bank, a British bank facing multiple setbacks in recent years, has secured a £325 million capital raise and a £600 million debt refinancing. Colombian billionaire Jaime Gilinski, the bank's largest investor, will take majority shareholder control. Bondholders will face a hit and switch to higher interest-paying bonds. The bank aims to strengthen its balance sheet after accounting errors, leadership departures, and delayed regulatory approval. The capital raise includes new equity and bail-in debt issuance. The deal also involves a restructuring of debts and discussions regarding the sale of residential mortgages.

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