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 Regulation Authority urged Metro Bank to enhance the internal risk models of its mortgage business.
Guided by Morgan Stanley'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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