Metro Bank (MTRO) has successfully tapped debt markets on its second attempt, selling £350m-worth of six-year, 9.5 per cent coupon bonds that will allow the lender to meet a new capital buffer threshold set by the Bank of England. Efforts to plug that gap with a 7.5 per cent bond were scrapped in shocking fashion last month, causing Metro’s shares to crash.
The fundraising efforts followed confirmation that founding chairman Vernon Hill will depart from the bank’s board has now been set for 31 December. A little over two months ago, he pledged to remain as non-executive director after a successor was appointed.
While the hunt for a successor is reportedly progressing well, Metro has decided that an existing non-executive will be appointed as interim chair if no full-time replacement is found by the year-end.
