By The Financial District
Oct 11, 20231 min
Jaime Gilinski Bacal, a Colombian banking and real estate entrepreneur, has assumed control of Metro Bank as part of a larger rescue deal to address the UK lender's financial challenges, Hanna Ziady reported for CNN.
Metro Bank has experienced a significant drop in share prices over the past year. I Photo: Can Pac Swire Flickr
Metro Bank, in a statement, announced that it had secured £325 million ($396 million) from investors, with £150 million ($183 million) in equity and £175 million ($213 million) in debt.
Of the new equity, Gilinski Bacal's Spaldy Investments will contribute £102 million ($124 million), increasing its stake from 9% to 53%.
Metro Bank, which was established in 2010 as the first challenger to major British main street banks, including Lloyds, Barclays, and HSBC, has experienced a significant drop in share prices over the past year, prompting the need for fresh funds.
Despite a 22% increase in share prices on Monday, the bank has still lost 55% of its value in 2023.