Metro Bank shares have fallen by as much as third on Thursday as the high street lender are considering £600 million capital raise to shore up their finances.
After the market opened on Thursday shares settled around 23% lower after it has been reported the bank are in talks with investors to raise £250 million in equity funding along with £350 million in debt.
Metro Bank are also thought to be considering £100 million share sale and they are looking at a range of options, including equity raise and debt and possible asset sales.
The bank have insisted that “no decision has been made on whether to proceed with any of these options.”
Metro Bank said, “The company continues to consider how best to enhance its capital resources.”
Metro are one of the UK’s top ten banks who have 76 branches across the UK and have roughly 2.7 million customers since it launched in 2010.
In about a years time Metro will need to refinance around £250 million of debt and on Wednesday ratings agency Fitch placed Metro Bank on negative watch, they cited concerns over its capital strength and funding, including its business model.