Barclays in Discussions to Acquire £3 Billion Mortgage Book from Metro Bank

Barclays is negotiating the purchase of Metro Bank's £3 billion mortgage portfolio. This step is part of Metro Bank's wider restructuring efforts to prevent its downfall. Exclusive discussions are underway for Barclays to acquire the home loan assets, which would help Metro Bank solidify its financial footing.

This news surfaces just as Metro Bank is set to announce shareholder support for a £925 million financing strategy. This recapitalization plan, already favored by bondholders, was devised after urgent negotiations for a bailout package last month.

The financing deal involves new equity of £150 million and new debt of £175 million alongside the refinancing of £600 million in existing loans. The plan also ushers in Colombian billionaire Jaime Gilinski Bacal as the main shareholder.

Founded in 2010, Metro Bank marked the first new high street bank in Britain in over a century. With about 2.7 million customers, it provides various banking services and has around 4,000 employees across its roughly 75 branches.

After the restructuring deal, Metro Bank reported stabilization in deposit outflows. CEO Dan Frumkin has hinted at Barclays as a potential buyer for the mortgage book, suggesting that there was significant interest from varied parties, including those similar to a large bank like Barclays.

The transaction is expected to close by year-end. Neither Barclays nor Metro Bank has made an official statement on the matter.