Sky high MREL costs cast shadow over Metro Bank’s future

By Tyler Davies
03 Oct 2019

Metro Bank could be forced to overhaul its strategy for growth after agreeing to pay an exorbitant rate on a new senior bond this week, in desperation to meet a looming set of regulatory requirements. Tyler Davies reports.

The UK challenger bank will pay a 9.5% coupon on £350m of non-preferred senior securities — the highest level for any sterling-denominated bank bond in recent years, even among the riskiest types of subordinated debt.

It had been under pressure to sell the bonds because it was ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial