Metro Bank is reportedly engaging in negotiations to transfer a mortgage portfolio worth £3 billion to Barclays, as part of its strategy to implement a comprehensive restructuring to save the retail bank.
According to Sky News, the bank, known for challenging industry norms, is exclusively discussing the sale of its residential mortgage book with Barclays.
This news surfaces just hours before Metro Bank, serving 2.7 million customers, is slated to inform its shareholders of its support for a £925 million refinancing scheme.
#Breaking At a general meeting, #MetroBank shareholders have endorsed a £925 million rescue package #MTRO This deal confirms a £325 million capital injection and £600 million in debt refinancing for the challenger bank, a move aimed at revitalizing its stressed balance sheet. https://t.co/4PPMpCm4MH pic.twitter.com/BTPfHEgOG3
— Share_Talk ™ (@Share_Talk) November 27, 2023
Today, in anticipation of the expected confirmation of this recapitalization, which has already received the nod from bondholders, the bank’s shares have seen an increase of nearly 10 percent.
Despite this uptick, the bank’s shares have still experienced a 66 percent decline over the course of this year.
