Metro Bank PLC’s (LON:MTRO) chairman and founder Vernon Hill has invested a further £10mln as part of a placing that raised nearly £280mln .
The challenger bank recently acquired a £597mln mortgage book from US distressed debt specialist Cerebrus and will use the money to bolster its balance sheet following that deal.
The funding was planned but brought forward following that acquisition with the money also to be used to support its rapid organic growth.
“This transaction secures fresh capital which will allow the phenomenal momentum in Metro Bank's growth to continue," said Hill.
Founded in 2010, the bank now has one million customers and saw underlying pre-tax profit rise to £2mln for to quarter to March, a turnaround from a £9.6mln loss in the same period in 2016.
Shares in the placing were issued at 3,465p, a 3% discount to the closing price yesterday, and represented just short of 10% of the shares in issue previously.