Metro Bank Holdings PLC is in talks to sell a £3 billion mortgage portfolio to Barclays PLC as part of its restructuring process in a bid to prevent collapse.

Sky News reported on Monday that Metro Bank plans to sell its residential mortgage book in order to strengthen its capital position, with the news coming just hours before the lender is expected to announce a £925 million refinancing plan.

https://news.sky.com/story/barclays-in-talks-to-buy-3bn-metro-bank-mortgage-book-13017468

Metro Bank announced the refinancing plan in October. Sky said the recapitalisation has been ‘overwhelmingly’ backed by shareholders.

Under the plans, Colombian billionaire Jaime Gilinski Bacal will become a majority shareholder.

Sky News reported that Metro Bank will look to raise about £150 million of new equity and GBP 175 million of new debt. It will also refinance £600 million of existing borrowings.

Metro Bank shares rose 10% to 42.95 pence each on Monday afternoon in London, while Barclays shares were down 0.5% at 141.00p each.

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