2023-10-05 17:05:47
The company is considering “how best to improve its capital resources”, particularly in relation to debt securities “of 350 million pounds maturing in October 2025”.
The British bank Metro Bank fell by more than 30% on Thursday on the London Stock Exchange following announcing that it was considering a fundraising or asset sales, investors worried regarding the company’s efforts to strengthen its balance sheet .
The company is considering “the best way to improve its capital resources”, in particular in relation to debt securities “of 350 million pounds (404 million euros) maturing in October 2025”, according to a communicated.
According to press reports, the bank is seeking to raise up to 600 million pounds (693 million euros).
The bank is evaluating “a range of options, including a combination of issuing equity or debt securities or refinancing and selling assets,” the company continues, adding that “no decision has been taken”.
Metro Bank shares fell 30.30% to 35.20 pence on the London Stock Exchange shortly following 3:00 p.m. GMT. Since its IPO in 2016, the bank’s stock has lost more than 98% of its value.
But “the company continues to respect its minimum capital requirements,” said Metro Bank in a press release, launched by an American businessman in 2010, and which was the first retail bank opened in a century in the Kingdom. -United.
The bank has accumulated “a huge confidence deficit” since 2019, when it announced that it had “misreported the value of its loan portfolio” and “had to raise £350 million of additional capital” at great expense. , recalls Michael Hewson of CMC Markets.
Then questions were also raised regarding corporate governance, with the bank under investigation by regulators for handling money from Iran and Cuba, two countries subject to US sanctions. “EU and the United States,” he continues.
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