Metro Bank Holdings Plc, currently valued at £75 million, is contemplating a £600 million funding proposal from its bondholders following a temporary 25% drop in shares, according to a report from the Financial Times on Friday. The bank's debts include a £350 million senior bail-in bond due in 2025 and a £250 million junior tier 2 note due in 2028.
In an effort to bolster its balance sheet, the bank is considering securitization, as well as asset and loan sales. Last month, the Prudential (LON:PRU) Regulation Authority urged Metro Bank to enhance the internal risk models of its mortgage business.
Guided by Morgan Stanley (NYSE:MS)'s advice and with the aim to "optimize its capital resources," the bank disclosed total assets of £22 billion at the end of June. This marks a significant decrease from its market value of £3.2 billion in 2017. The bank's total short and long-term debt currently stands at £4.9 billion.
Among the shareholders of Metro Bank is Willett Advisors LLC, owned by Michael Bloomberg. Despite the current financial challenges, the bank has yet to make a decision on the bondholders' funding offer.
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