Solidifying its reputation as an increasingly prominent and attractive player on the international capital markets, NLB successfully concluded the bookbuilding process for its perpetual NC5 Additional Tier 1 Notes in the amount of EUR 300 million. The transaction attracted strong demand, with the final orderbook above one billion euros. The notes obtained credit rating of BB- by S&P Global Ratings.
Driven by strong demand from a broad base of high-quality investors, including fund managers, pension funds, insurance companies and others across regional and international markets, the offering was oversubscribed more than 3 times, attracting participation from over eighty accounts from European Union, UK, Middle East, and other markets. The Initial Price Thought (IPT), originally indicated at 7% area, was tightened by 50 basis points to a final yield of 6.5% p.a.
With this landmark public transaction, a first for the CEE region in its benchmark size, syndicated international format, NLB has once again proven its capacity to present Slovenia and our home countries as well as our name in particular as an attractive investment destination. Furthermore, with this transaction we also concluded the buildup our of our fixed income stack in benchmark size formats across the seniority range. The achieved attractive pricing reflects the continued work on our investor base and is broadly in line with peers. The bank is now well established for the next period of future growth.
The subordinated AT1 notes are expected to be issued on 26 November 2025. The issuer will have the option for early redemption on 26 November 2030 and on any interest payment date thereafter. The notes will carry an annual interest rate of 6.5% (determined as 5y mid swap increased by 407.6 basis points) resetting every five years.
The notes are intended to strengthen and optimize NLB Group’s capital position, consequentially enabling continuous high growth rates of the Group, as well as supporting our ambitious business strategy that foresees balance sheet exceeding EUR 50.0 billion, recurring revenues exceeding EUR 2.0 billion, and profits exceeding EUR 1.0 billion by the end of 2030. This issuance brings, among others, the benefits of maintaining strong capital ratios to ensure compliance with our strategic Tier 1 targets, fosters further growth, and contributes to building a resilient and efficient capital structure.
BNP Paribas, BofA Securities Europe SA, Goldman Sachs Bank Europe SE, Erste Group Bank AG and NLB acted as Joint Lead Managers and Joint Bookrunners.
The issuance is aligned with NLB’s published funding plan on capital markets as outlined in the Interim report for first nine months of 2025.
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