The media reported that the British Metro Bank was able to secure $1.1 billion from investors.
According to the information available to journalists, the financing package of the specified lender, among other things, includes the received capital for 325 million pounds (396 million dollars), including new shares for 150 million pounds (183 million dollars) and 175 million pounds (213 million dollars) in the form of MREL.
The financial institution will also refinance the debt for 600 million pounds (732 million dollars).
The fundraising will be led by Spaldy Investments, which is the largest shareholder of the bank. This organization will own 53% of the shares of the financial institution.
Last Sunday, October 8, the Bank of England said that the Prudential Regulation Authority has a positive attitude to the measures that Metro Bank has taken to strengthen its capital position.
The last days of last week were very stressful for the financial institution. The lender has stepped up efforts to strengthen its position. Against the background of reports appearing in the information space that a financial institution is looking for 600 million pounds (731 million dollars) to improve its balance sheet, the price of bank shares plunged.
The media also published information according to which the British financial regulator contacted the country’s largest creditors to find out about their plans for a potential acquisition of Metro Bank. Insiders claim that NatWest, Santander, and Lloyds Banking Group considered applications for some assets of the bank, which found itself in a difficult situation. Other lenders have not shown interest in directly buying a financial institution.
The media also reported that JPMorgan and HSBC last Saturday, October 7, decided not bid. According to insiders, these financial institutions considered that it would be problematic for them to provide additional capital to Metro Bank.
HSBC has already taken part in the liquidation of the consequences of the crisis in the banking sector this year. This financial institution became the owner of the British unit of the American Silicon Valley Bank (SVB) after the collapse of this lender.
Noel Quinn, CEO of HSBC Group, said that the expansion of the bank’s ownership structure as a result of the acquisition of arm SVB was the right strategic decision in the context of business development in the UK. He also noted that in this case, the lender’s commercial banking franchise is being strengthened. According to Noel Quinn, as a result of the acquisition of unit SVB, the financial institution’s ability to serve innovative companies and firms at the stage of rapid growth has improved, including in the technological sphere and the area of natural sciences in the UK and beyond.
This year, the Fintech Growth Fund investment fund worth 1 billion pounds ($1.2 billion) was launched in the United Kingdom. This project is being implemented to strengthen the country’s reputation as a center of fintech technologies. The Fund provides money support to financial technology companies at the growth stage. The help is available until the moment when the company becomes public. The media claim that the creation of the fund is a kind of response of the United Kingdom to accusations of creating barriers to the activities of fintech entrepreneurs, forcing them to place shares abroad.
Fintech Growth Fund provides investment funds to challenger banks that are focused on financial infrastructure providers and payment technology groups.
As we have reported earlier, Metro Bank Launches Digital Car Loan.