Metro Bank avoids MREL raise with mortgage portfolio sale

Metro Bank PA 575x375 21Dec20
By Frank Jackman
21 Dec 2020

Metro Bank has avoided the need to raise debt towards meeting its minimum requirements for own funds and eligible liabilities (MREL) after it sold a portfolio of mortgages to NatWest Group.

Metro, rated B+ by Fitch, said on Friday that it had sold a £3.045bn portfolio of mortgages to NatWest for cash.

The sale “removes any current need (for Metro Bank) to issue MREL qualifying debt,” Daniel Frumkin, the bank’s chief executive officer, said in a statement.

Metro Bank ...

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