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Metro Bank rescue deal approved by shareholders
Shareholders of Metro Bank have voted in favour of a £925m rescue deal to inject capital into the bank.
Last month, it announced that it had secured a package comprising a £325m capital raise and £600m of debt refinancing.
The capital raise includes £150m of new equity and £175m of new minimum requirement for own funds and eligible liabilities (MREL) issuance.
Some 90 per cent of Metro Bank’s shareholders voted to approve all the resolutions.
This arrangement will also see the lender’s largest shareholder Spaldy Investments increase its stake from nine to 53 per cent and become a controlling stakeholder.
During the announcement of the deal last month, Metro Bank said the money would allow it to grow its assets and shift to commercial lending.
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The bank is also looking to sell a £3m residential mortgage portfolio.
This comes after Metro Bank’s approval for its advanced internal rating-based (AIRB) application from the Prudential Regulation Authority (PRA) was denied for this year.
The bank hoped to gain approval which would allow it to use internal risk modelling for residential mortgage lending.