Metro Bank considering up to £600m capital raise - reports

(Sharecast News) - Metro Bank is reportedly looking to raise hundreds of millions of pounds from investors. According to the Financial Times, which cited people with knowledge of the plan, the bank is looking to raise as much as £600m after its share price fell nearly 50% in recent weeks.

It was understood the challenger bank is in talks with investors about raising £250m in equity funding and £350m in debt to shore up its balance sheet.

Last month, regulators failed to approve a request from Metro to lower the the capital requirements attached to its mortgage business.

Metro told the FT: "As previously stated, Metro Bank continues to consider how best to optimise its capital resources to allow it to take advantage of the deposit and asset origination platform that has been built."

A person familiar with the decision told the FT that Metro has hired Morgan Stanley to provide strategic advice and lead any potential capital raise.

According to Sky News, Moelis - another investment bank - is also thought to be involved, along with Metro's corporate broker, Royal Bank of Canada.