Colombian tycoon takes over Metropolitan Bank (Illustration, Reuters)
[Financial Channel/Comprehensive Report]The troubled British Metropolitan Bank (Metro bank) will be taken over by a Colombian tycoon. Metro Bank announced on Sunday that it will raise 325 million pounds (approximately NT$12.769 billion) in capital. The equity financing will be financed by Metro’s largest bank. Spaldy Investments, a shareholder owned by Gilinski, took the lead and invested 102 million pounds (approximately NT$4.007 billion); Metro said that after the transaction is completed, Spaldy will become the controlling shareholder, holding 53% of the shares.
The capital raising will be completed in the fourth quarter, subject to shareholder and bondholder agreements.
Reuters reported that the financing included 150 million pounds (approximately NT$5.893 billion) of new equity and the issuance of 175 million pounds (approximately NT$6.875 billion) of bailout debt (called “MREL”).
Gilinsky said in a statement, “I was given the opportunity to become a major shareholder of the bank because I believe in the needs of both physical and digital banks, with an even greater focus on excellent customer service.”
In addition to the £325 million capital raising, the Met will also refinance £600 million of debt, a deal involving a debt restructuring that will extend its borrowing term to £250 million due in June 2028 (approximately NT$9.822 billion) Metro Bank Tier 2 bondholders will take a 40% cut.
Holders of that bond will be converted into new bonds paying a 14% interest rate, while holders of separate MREL bail-in bonds will be converted into new bonds paying a 12% coupon.
In addition, Metropolitan Bank also said it is discussing the sale of up to 3 billion pounds (about NT$117.87 billion) of residential mortgage loans.
The Bank of England’s Prudential Regulation Authority said in a statement that the Prudential Regulation Authority welcomes the measures taken by Metropolitan Bank to strengthen its capital position.
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2023-10-09 02:17:11
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