METRO Bank is raising an extra £100m in its cash call, it emerged yesterday, as investors lap up the equity on offer in its latest fundraising round.
The start-up lender is increasing the fundraising drive to £385m, £100m more than previously planned as investors want to put more cash into the bank.
“This additional capital raise will be used to further support Metro Bank’s continued unprecedented growth in deposits, lending and accounts,” bosses said in a circular to shareholders, seen by Sky News.
“We expect to be able to fulfil all orders from existing shareholders from the current offer which will close on 6th December. We then expect to be able to fulfil orders from new shareholders in the follow-on offer.”
The bank has recently denied it is planning an initial public offering, preferring to remain a private company in its early stages.
But it has been spending heavily to expand – losses came in at £14.3m in the third quarter of this year.
Chief executive Craig Donaldson last month told City A.M. he believes losses have peaked and the bank should start approaching profitability.
Metro was set up three years ago in a move headed by chairman Vernon Hill, a US billionaire who made his fortune by founding and later selling Commerce Bancorp.
Metro Bank declined to comment on the fundraising round.