{"id":70619,"date":"2023-10-09T13:51:17","date_gmt":"2023-10-09T17:51:17","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/metro-bank-secures-925m-financing-deal-largest-shareholder-takes-majority-control\/"},"modified":"2023-10-09T13:51:20","modified_gmt":"2023-10-09T17:51:20","slug":"metro-bank-secures-925m-financing-deal-largest-shareholder-takes-majority-control","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=70619","title":{"rendered":"Metro Bank secures \u00a3925M financing deal, largest shareholder takes majority control"},"content":{"rendered":"
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\u00a9 Reuters. <\/span>
\n<\/i>\n<\/div>\n

Metro Bank, a prominent UK challenger bank, has secured a substantial \u00a3925 million financing deal following an accounting error in 2019. The deal, confirmed on Monday, includes a \u00a3325 million capital raise and \u00a3600 million debt refinancing. Jaime Gilinski Bacal, the largest shareholder of the bank, will take majority control after contributing \u00a3102 million via his Spaldy investment vehicle. CEO Dan Frumkin is also investing up to \u00a32 million in the equity raise.<\/p>\n

The bank’s largest shareholder and renowned banking asset transformer, Jaime Gilinski Bacal, will now hold a 53% controlling stake in the bank through his British Virgin Islands-based firm, Spaldy Investments. Major shareholders provided \u00a3150 million of fresh equity as part of the deal, while bondholders provided \u00a3175 million of new debt.<\/p>\n

The financing package comes after Metro Bank misclassified \u00a3900 million worth of loans, which led to fines from UK regulatory bodies and disapproval of its mortgage business plans by regulators. Amid financial stability concerns, the Prudential Regulation Authority urged Metro Bank to strengthen its balance sheet or find a buyer. The Bank of England was also gauging interest for a potential sale.<\/p>\n

In response to these challenges, Metro Bank is planning to sell up to \u00a33 billion in residential mortgages to improve its common equity tier 1 ratio after regulators rejected a change to capital requirements on its mortgage book. This move is described by CEO Dan Frumkin as a ‘new chapter’ for the bank and awaits a control assessment by the Prudential Regulation Authority (PRA) and approval from the Financial Conduct Authority.<\/p>\n

Potential bids for some of Metro’s assets from NatWest, Santander (BME:), and Lloyds Banking Group (LON:) are under consideration. The stock will be issued at 30p per share, pending regulatory approvals from the PRA and FCA, a discount to its current valuation of 45p per share.<\/p>\n

Despite being the first new high street bank in the U.K. in over 100 years with 76 branches, 2.8 million customers, and \u00a321.7 billion (GBP1 = USD1.2181) in assets, the bank’s shares had decreased by 47% over the past month. This financing deal provides Metro Bank with an opportunity for “continued profitable growth,” according to CEO Daniel Frumkin.<\/p>\n

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.<\/em><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. Metro Bank, a prominent UK challenger bank, has secured a substantial \u00a3925 million financing deal following an accounting error in 2019. The deal, confirmed on Monday, includes a \u00a3325 million capital raise and \u00a3600 million debt refinancing. Jaime Gilinski Bacal, the largest shareholder of the bank, will take majority control after contributing \u00a3102 […]<\/p>\n","protected":false},"author":1,"featured_media":2360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-70619","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\nMetro Bank secures \u00a3925M financing deal, largest shareholder takes majority control | iFintechWorld<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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