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The Markets
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Banks

Metro Bank soars on rescue finance deal

Shares in Metro Bank Holdings PLC (LSE:MTRO) started the week almost 30% higher after news broke that the challenger bank has secured a much-needed funding package.

Split between new equity from shareholders and fresh debt from bondholders, Metro announced it raised £325 million through the deal.

Metro has also agreed to refinance some £600 million worth of debt, after reports emerged last week that the bank was in search of rescue funds to shore up its balance sheet.

“Today's announcement marks a new chapter for Metro Bank, facilitating the delivery of continued profitable growth over the coming years,” chief executive Dan Frumkin said.

Shares climbed by 27% to 57.50p in early trading.

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