Issuance of NLB subordinated notes successfully completed

19 November 2019

NLB is returning to the international debt capital markets for the first time after 2014. Today, 19 November 2019, it successfully completed the issuance of subordinated Tier 2 notes for inclusion in additional capital in the amount of EUR 120 million on the international capital markets. The final maturity of the notes is 19 November 2029 (callable on 19 November 2024). The demand from qualified investors was significantly higher than the supply – with the order book exceeding EUR 290 million.

The transaction, which was co-organised by UBS Europe SE and NLB, is the bank’s first international capital transaction after having successfully completed the privatisation process and is one of the rare capital market transactions carried out by the banking issuers from the region.

“The success of the transaction confirms the strong investors’ confidence in NLB's solid business model and its outlined strategy,” said Archibald Kremser, Member of the Management Board and CFO. The investor base is diversified and includes international as well as regional investors, mostly based in Germany, United Kingdom, Austria, Croatia and Slovenia. Interest came mostly from IFIs, pension funds and top international fund managers. “The issuance of notes will allow NLB to strengthen and optimize its capital structure as envisaged since the IPO,” he added.

Notes with the interest rate of 3.65% per annum and BB rating (S&P) were admitted to trading on the Luxembourg Stock Exchange, Euro MTF market, as of the date of issue.

NLB Communications