Thursday 16 May 2019 10:28 pm

Metro Bank raises £375m of capital three hours after launching share placing

Metro Bank raised £375m of capital just hours after launching a discounted funding round this evening.

A spokeswoman confirmed that the embattled challenger bank, which has struggled after a major loans blunder in January, closed the share placing less than three hours after announcing the funding round.

Read more: Metro Bank launches £350m share placing at discounted price

The target amount was increased from £350m due to the high quality order book recieved.

Metro placed the shares at 500p, a discount on today's closing price of 536.5p.

Shares fell 8.13 per cent today as investors reacted to reports of the discount before the bank made its official announcement after the market closed.

Read more: Metro Bank shares soar ahead of £350m capital raise announcement

Earlier this week, the nine-year-old lender was forced to quash reports of financial turmoil that saw some customers rush to withdraw funds from their accounts and sent shares to an all-time low of 475p.

In January, the bank admitted that commercial loans had been wrongly classified and should have been among its risk weighted assets, sparking the worst one-day share price drop for a British bank since the financial crisis.