Corporate Finance

NLB offers financial and privatisation advisory services to its clients both domestically and internationally.

NLB commenced to play an active role on the securities primary market through two private placement debt issues in amount of 28.6 million euros. NLB continued to develop its advisory service capabilities, mainly in the field of arranging financing for investment projects, realisation and privatisation activities. Together with Nomura Inc., NLB successfully arranged a 10 million euros private shares placement for Hermes Softlab, the largest software development company in Slovenia. One of the largest projects in the primary market was the issue of a 40 million euros BTC bond underwritten by NLB.

Organising syndicated loans represents an important source of fees. A big increase in syndicated loans was for the financing of large development projects for Slovenia's leading corporations including Telekom Slovenije, Slovenian Railways, Slovenian Highway and Road Construction company DARS, Istrabenz and Mobitel, totalling 598 million euros. Some of the projects were arranged in cooperation with foreign investors and commercial banks including Sumitomo and West LB.

NLB and CEB (Council of Europe Development Bank) reached an agreement for the financing of a building project for retirement homes in Slovenia totalling 5.4 million euros, to be realised during 2002. NLB has access to favourable funding facilities also with the European Bank for Reconstruction and Development (EBRD) within the framework of EBRD programme for the financing of medium- and small-scale businesses.

In the field of privatisation advisory services, NLB successfully co-operated with an international audit firm preparing for the privatisation of energy supply companies in Slovenia.

Securities trading

Securities trading services include local and foreign primary and secondary securities markets.

NLB established trading operations on the ex-Yugoslavia markets through several business partners thus enabling domestic and foreign clients securities investments in the entire region. The recent abolition of restrictions on foreign portfolio investments, imposed in 1997, resulted in an increase in foreign equity trading. This positive legislative environment increased sovereign international country rating and the improved ratings for several local financial institutions contributed to increased demand for bond over equity trading by domestic and foreign investors.

Portfolio management

Significant progress has been achieved in the development of our client-based asset management service. Our approach is based on a global perspective with more than half of the portfolios under management being in foreign securities from major international capital markets. Standardised portfolios and competitive pricing are advantages offered to our clients, enabling the asset management service to grow in importance on the domestic market.

Custody services

Assets under custody, invested on both domestic and foreign markets, have been constantly increasing, achieving an annual growth of 23.8 per cent. Institutional investors from neighbouring countries were the most active players on the domestic market, while Slovenian insurance companies had a leading role on foreign markets. Bonds represent over 90 per cent of all investments. As the first Slovenian bank NLB introduced a credit line to foreign investors as new value added custody.
Analytical support

NLB's competitive advantage in investment banking is based on its strong analytical and research capabilities, linked to its intimate knowledge of Slovenian companies and their management boards. NLB also undertakes valuations of securities, and on a selective basis, some consulting services.