25th Jul 2018 08:52
LONDON (Alliance News) - Metro Bank PLC said Wednesday it raised about GBP303 million in a non-pre-emptive cash placing of about 10% of the company's shares.
A total of 8.9 million shares at a price of 3,422.00 pence were placed by RBC Capital Markets, Jeffries International Ltd and Keefe, Bruyette & Woods.
The new shares are expected to be admitted to the London Main Market on before Friday. The total number of Metro Bank shares currently issued stands at 97.4 million.
The FTSE 250-listed retail bank's CET1 ratio as a result of the placing is 17.0% with a leverage ratio of 6.1%.
Metro Bank also updated its 2020 return on equity target to about 11.5%, leaving its other 2020 and 2023 targets unchanged.
When the placing was announced late Tuesday, the bank had said the proceeds of the placing will be used to support the bank's growth and replace liquidity used for the GBP523 million acquisition of a portfolio of UK mortgages from CERH RSMC Sub BV and Capital Homes Ltd.
Chairman and Founder Vernon Hill said: "Once again our shareholders have demonstrated their belief in Metro Bank's long-term vision to create fans. As a fast growing, profitable bank, the capital secured will allow us to continue to meet our growth targets and continue to revolutionise banking for Britain's consumers and business alike."
Chief Executive Officer Craig Donaldson said: "The transaction was significantly oversubscribed at the market price, demonstrating ongoing confidence in our ability to grow, win customers and disrupt the sector."
Shares in Metro Bank were down 5.3% Wednesday at 3,242.00
Metro Bank also had reported an increase in first-half profit and revenue late Tuesday.
Metro Bank's underlying pretax profit for the six months ended June multiplied to GBP24.1 million from GBP6.0 million the year before.
The bank's total revenue increased 45% to GBP189.8 million from GBP131.1 million in the same period the previous year.
The retail bank reported record lending growth of GBP2.39 billion to GBP12.0 billion from GBP7.75 billion, a 55% increase. The company's assets increased 46% to GBP19.13 billion from GBP13.09 billion.
Metro Bank also increased its deposits by 40% to GBP13.73 billion from GBP9.80 billion
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