In the United Kingdom, Metro Bank announces financial rescue package amid difficulties Companies

oh Metro Bank This Monday, the 9th, it announced a £325m capital increase and £600m debt refinancing to “improve balance sheet strength and accelerate earnings potential”. The news sent the bank’s shares up 10.94% on the London Stock Exchange.

Spaldy Investments Limited will become the controlling shareholder of Metro Bank. The package allows Metro Bank to continuously improve its products and services to meet the banking needs of its customers, both digitally and physically, the company said in a statement.

“This move provides an opportunity to significantly grow assets over the coming years by gradually transitioning into specialty mortgages and business loans to improve risk-adjusted returns,” the release added.

In an official statement, a Bank of England (BoE) spokesperson said, “The Prudential Regulation Authority welcomes the steps taken by Metro Bank to strengthen its capital position.”

The deal comes after investors were spooked last week by news that the bank was seeking a bigger funding package. Negotiations took place over the weekend, with several major bidders being approached for possible offers.