Metro Bank has agreed a financing deal, strengthening its troubled stability sheet, following Sky News stories it was looking for the funding.

Nearly £1bn (£925m) has been raised by Metro Bank, which has 2.7 million buyer accounts, making it one of many 10 largest banks in Britain.

In an announcement the lender stated it raised £325m in new funding and refinanced £600m of debt. The largest shareholder,
Spaldy Investments, an funding agency owned by a Colombian billionaire, is contributing £102m.

Sky News reported final week the excessive avenue financial institution was drawing up plans to raise hundreds of millions of pounds. Its share value fell steeply, practically 30%, following the news.

Metro Bank additionally confirmed Sky News reporting that it was in dialogue to sell up to £3bn of residential mortgages.

A “gradual shift” in direction of offering specialist mortgages, typically offering different options for individuals who have been denied a standard mortgage, and business lending will likely be facilitated by way of the funding and refinancing, Metro Bank stated in an announcement.

Takeover bids from rival financial institution Shawbrook have been rejected by Metro Bank

A so-called challenger financial institution, Metro Bank turned the primary new lender to open on Britain’s excessive streets in additional than 100 years when it launched in 2010, within the wake of the 2008 monetary disaster.

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It provides present and enterprise accounts, private loans and insurance coverage merchandise and employs about 4,000 folks, working from about 75 branches throughout the nation.

The newest news “marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years”, stated Daniel Frumkin, Metro Bank chief govt.

“Metro Bank made a statutory profit after tax in Q3 2023, and continues to demonstrate ongoing momentum as we strive towards our ambition to be the UK’s number one community bank.

“Our robust franchise is underpinned by our loyal buyer base and engaged colleagues and we’ll proceed to develop the Metro Bank supply to supply the digital and bodily banking companies our prospects anticipate.”

The Bank of England said it “welcomes the steps taken by Metro Bank to strengthen its capital place”.