Metro Bank share price makes further gains after successful bond sale and Vernon Hill exit
Metro Bank’s share price recovered further gains in its share price this morning following a busy day involving the departure of its controversial chairman and a successful bond sale.
Shares in the under-fire lender rose more than five per cent to 240p after the bell this morning, adding to a 26 per cent rise during trading yesterday.
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Investors lapped up the news that the challenger bank would raise £350m from a bond issue, having failed to secure debt fundraising last week when shares plunged to an all-time low.
The departure of Vernon Hill, Metro Bank’s colourful dog-mad chairman, was also welcomed by investors after a troubled year for the firm.
In January the group revealed a major accountancy error that led to an emergency cash call.
Metro’s share price has since plunged by roughly 90 per cent, driving investor calls for a shake-up of the firm’s management team.
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While Hill had already announced he would be stepping down as chairman, the bank revealed yesterday that he will be quitting his roles as a non-executive director and president too.
“The board’s search for a new chairperson is progressing well. However, if this is not completed by the end of the year, the bank will appoint an existing independent non-executive director as interim chairperson,” the firm said in a statement.