Metro Bank shares fall after investors turn away £200m bond sale
Metro Bank shares plunged more than 35%, a record low on Tuesday after wary investors refused to purchase bonds, another blow to the bank since it revealed an accounting error in January.
The bond sale was launched on Monday morning, tempting buyers with an interest rate of 7.5% – a percentage considered high for a European bank. However, after markets closed, the bank had announced that it had cancelled the sale by the afternoon after failing to reach its £200m – £250m sales target.
Russ Mould, investment director of AJ Bell said, “The cancellation of a £200m bond sale is another major blow to Metro Bank, leaving management with red faces and the shares sinking even further.”