Sky News understands that Caius Capital, which was founded in 2016 by Antonio Batista and William Douglas, is the largest bondholder involved in frantic weekend talks struck to keep Metro Bank trading as a standalone company.

Caius, which reached a settlement with Italian lender Unicredit in 2018 following a dispute over the bank's treatment of complex financial instruments, is said to have played a pivotal role in the agreement struck on Sunday evening.

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Banking watchdogs had been preparing to force Metro Bank into the arms of a larger rival, with banks including Santander UK exploring eleventh-hour bids, if a standalone financing package had failed to emerge.

The lender's board announced a £925m financial restructuring, including a £150m share sale, £175m of new debt and a £600m debt refinancing.

Shares in Metro Bank surged on Monday morning as investors greeted news of the deal - which remains subject to various approvals - with relief.

Under the deal, shareholders face being significantly diluted, while some bondholders will be forced to accept significant haircuts on their investments.

Nevertheless, one source close to the group led by Caius Capital said the bondholders were "pleased" with the outcome.

Jaime Gilinski Bacal, founder of Spaldy Investments Limited, will become Metro Bank's controlling shareholder if the deal gets voted through.

A spokesman for the bondholder group declined to comment.