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.
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
