As part of a broader restructuring strategy, Metro Bank Holdings PLC is currently in discussions to sell a substantial £3 billion mortgage portfolio to Barclays (LON:BARC) PLC. This move comes as the bank seeks to solidify its balance sheet and follows a significant £925 million refinancing strategy that was first announced in October.
The proposed sale is a key element in Metro Bank's financial revitalization efforts. In addition to the mortgage portfolio's potential transfer, the bank is also looking to boost its capital through the generation of £150 million in equity and £175 million in debt. Moreover, the strategy includes the refinancing of existing borrowings amounting to £600 million.
Metro Bank's shareholders have expressed a strong vote of confidence in the restructuring plan, which, if successful, will position Jaime Gilinski Bacal as the majority shareholder. The market has responded positively to the news of the bank's ongoing negotiations and restructuring plans, with Metro Bank's shares climbing by 10% during today's afternoon trading session on the London Stock Exchange. On the other hand, Barclays saw a modest decline in its share value, with a 0.5% dip noted.
While the deal is yet to be finalized, the discussions are seen as a crucial step in Metro Bank's strategy to strengthen its financial standing. The outcome of the shareholders' vote on the restructuring terms, which took place today, is expected to further shape the bank's path forward. As of now, official statements from both Barclays and Metro Bank regarding the status of the negotiations have not been made public.
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