Visible tightening of spreads compared to the previous transaction
(PRESS RELEASE) LJUBLJANA, Slovenia, 6-Feb-2020 — /EuropaWire/ — Leading Slovenian bank NLB d.d. (Nova Ljubljanska Banka d.d.) announced it has successfully completed the issuance of subordinated Tier 2 notes in the aggregate nominal amount of EUR 120 million. The proceeds will be included in the bank’s additional capital. The new issuance comes after the bank’s successful issuance of EUR 120 million subordinated Tier 2 notes on the international debt capital markets last November.
The new subordinated Tier 2 notes will have their final maturity on 5 February 2030, with a call option on 5 February 2025. UBS Europe SE and NLB have led the current transaction and the funds will further strengthen and optimise NLB’s capital structure.
According to the bank, there has been an increased investor demand which has, as a result, led to a substantial over-subscription of the order book at roughly 2,5 times offer size (in excess of EUR 300 million). The investor pool includes international as well as regional investors, mainly from the United Kingdom, Czech Republic, Slovenia, France, the rest of Europe and Asia. Nonetheless, large international fund managers, International Financial Institutions, pension funds, insurance companies and banks represent the majority of the demand in the issuance of the notes.
Commenting on the issuance of NLB’s subordinated Tier 2 notes, Archibald Kremser, CFO at NLB, said:
“Success of the transaction is attested by robust investor demand and visible tightening of spreads compared to the previous transaction. This is a sign of considerable trust in future potential of NLB operations.”
The NLB subordinated Tier 2 notes will have a yield of 3.40% p.a. and BB rating by the S&P rating agency. The notes will trade on Luxembourg Stock Exchange’s Euro MTF Market.
NLB in brief
NLB d.d., which stands for Nova Ljubljanska Banka, is part of NLB Group which is Slovenia’s largest banking and financial group whereas the NLB d.d. is the parent bank. The group also includes 6 other banks and a number of other companies as well.
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SOURCE: NLB Communications