13th May 2019 08:22
LONDON (Alliance News) - Metro Bank PLC on Monday confirmed that plans for its GBP350 million equity raise is "well advanced" and it has begun final discussions with potential investors.
Shares in Metro Bank were down 7.0% at 496.60 pence on Monday morning. Metro Bank's shares are down 68% in the year so far after a January announcement that it had underestimated the risk on its commercial loans and needed to raise capital to compensate for the shortfall.
The lender said it has started its final talks with both existing shareholders and new investors and received positive feedback, with the GBP350 million equity raise to complete via placing by the end of the second quarter of 2019.
The equity raise is subject to a standby underwriting agreement with RBC Capital Markets, Jefferies Group LLC and KBW Inc, which was announced in February.
"The company will update the market in due course," Metro Bank said.
The bank said Monday it was responding to "recent press speculation". An article in the Financial Times on Friday last week said there had been some concern that the GBP350 million was not enough to support Metro Bank's capital position and it may be "forced to raise a larger amount".
https://www.ft.com/content/430af2d8-7315-11e9-bbfb-5c68069fbd15
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