Metro Bank says equity raising is well advanced
Metro Bank Holdings
33.20p
08:34 25/04/24
Metro Bank said its plans to raise £350m of equity capital were well advanced after the bank was forced to reassure customers their money was safe.
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Metro announced the planned capital raising in February after lax accounting caused it to under-report the risk of millions of pounds of commercial property loans and loans to commercial buy-to-let operators. The error led to speculation about the bank's financial strength which it sought to quash at the weekend.
In a stock exchange announcement on Monday, the FTSE 250 challenger bank said: "Further to recent press speculation, Metro Bank confirms that its plan to raise c£350m of equity capital to support its growth is well advanced. Metro Bank has commenced final discussions with existing shareholders and new investors, and the feedback continues to be positive."
Metro is the most shorted stock on the London market and Reuters has reported that some business customers had withdrawn deposits. The company said the equity raising would be completed by the end of the second quarter of 2019.