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NLB successfully concluded the bookbuilding process for its envisaged green senior preferred 4NC3 notes in the benchmark size of EUR 500 million. Transaction was well received with over EUR 1.8 billion of investor interest. Orders came from reputable fund managers, international financial institutions, banks, insurance companies and other investors.
The notes are expected to be issued on June 27, 2023, their maturity date will be June 27, 2027, and the issuer will have the option for early redemption on June 27, 2026. The interest on the principal of the notes will accrue at the interest rate of 7.125% per annum.
The notes are intended to meet MREL requirement and also future growth opportunities.
Green notes special feature is that the issuer commits to allocate the issue amount in support of eligible green projects that comply with the conditions defined in the publicly announced framework for the green bond (NLB’s framework is available here). NLB intends to use the collected funds to support projects in the field of renewable energy, energy efficiency, green buildings, clean transport, sustainable water and wastewater management and pollution prevention and control.