Metro Bank shares surge on bond sale success

Shares in troubled British lender Metro Bank rose by more than 30 per cent on Wednesday after it announced the successful relaunch of a £300 million (€337 million) bond deal and the exit of its chairman and founder Vernon Hill.

The news follows a turbulent year for the bank whose shares have fallen as much as 90 per cent since it disclosed a major accounting error in January.

Its troubles intensified last month when it had to ditch a £250 million (€280 million) bond issue after failing to attract investors despite offering a hefty yield.

Obligation

Metro successfully relaunched the bond sale on Wednesday at a higher yield of 9.5 per cent, fulfilling an obligation to raise more regulatory capital by the end of the year.

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The lender’s shares, which rose 6 per cent on the news of Mr Hill’s exit, rose as much as 31 per cent after the bank said it had received orders worth £475 million (€534 million) for the £300 million (€337 million) bond.

– Reuters