Metro Bank raises £375m; shares soar on news
By Frank Prenesti
Date: Friday 17 May 2019
(Sharecast News) - Troubled British lender Metro Bank confirmed it had raised £375m to prop up its balance sheet, £25m more than planned, sending its shares sharply higher in early Friday trade.
The company said there had been "strong demand" from new and existing investors.
Metro was last year forced to reveal it had under-reported the risk of its loan book, covering property and buy-to-let borrowing, by almost £1bn.
The placing was priced at 500p a share, a 14% discount to the stock's closing price on Wednesday.
The bank of England's Prudential Regulation Authority welcomed the raising, saying Metro was "profitable and continues to have adequate capital and liquidity to serve its current customer base".
"It has raised additional capital in order to fund future growth."
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