Metro Bank shareholders have voted overwhelmingly in favour of a major refinancing package which the bank hopes will secure its future.

The deal was approved by over 90 per cent of shareholders, even though it will dilute their shareholding substantially.

The vote comes after the embattled challenger announced a major refinancing package in October. The package includes a £325m capital raise led by existing shareholder Spaldy Investments, of which £150m is new equity, alongside £600m of debt refinancing.

Spaldy Investments — led by Colombian billionaire Jaime Gilinski Bacal — became the controlling shareholder with a stake of around 53 per cent.

After bondholders backed the plan last month, today’s vote means the package is set to go ahead. The bank will place 500m new shares at a price of 30p per share.

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A Metro Bank spokesperson said: “This is testament to their belief and confidence in the future of Metro Bank and proves there is a place in retail and business banking for our model of stores in major towns and cities, combined with online and mobile banking and great customer service.”

“We remain committed to being the number one community bank and will expand our estate of 76 stores, with new stores planned in the north of England over the next two years,” they continued.

Separately, Barclays is reportedly in exclusive talks to buy a £3bn residential mortgage book from Metro Bank. A deal is likely to be reached by the end of 2023, according to Sky.