NLB successfully issued subordinated Tier 2 notes

February 5, 2020

After its successful comeback to the international debt capital markets last November, NLB d.d. is active on this market once again. Today, on 5 February 2020, it has namely successfully completed the issuance of subordinated Tier 2 notes to be included in additional capital in the aggregate nominal amount of EUR 120 million.

The final maturity of subordinated notes is 5 February 2030, with a call option on 5 February 2025. The transaction which was led by UBS Europe SE and NLB, will allow NLB to further strengthen and optimise its capital structure. 

Investor demand lead to substantial oversubscription of the order book at roughly 2,5 times offer size (in excess of 300mln). The investor base is dispersed and includes international as well as regional investors, mainly from the United Kingdom, Czech Republic, Slovenia, France, the rest of Europe and Asia. Majority of demand was sourced from large international fund managers, International Financial Institutions, pension funds, insurance companies and banks.   

“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,” said Archibald Kremser, CFO.

The notes with a yield of 3.40% p.a. and BB rating by the S&P rating agency, were on the issuance date admitted to trading on the Euro MTF Market operated by the Luxembourg Stock Exchange.

NLB Communications