The interest on the principal of the subordinated notes will accrue at the interest rate of 3.40% per annum and the issue price will be equal to 100% of their nominal amount.

NLB announced on the Ljubljana Stock Exchange the collection of orders for initial sale of its subordinated notes, which have been offered to eligible counter parties and professional clients outside the United States of America, has been concluded successfully. The subordinated notes are expected to be issued on 5 February 2020 in the aggregate amount of EUR 120m. The interest on the principal of the subordinated notes will accrue at the interest rate of 3.40% per annum and the issue price will be equal to 100% of their nominal amount.

As a reminder, the company has on 17 September 2019 entered into a loan agreement relating to a EUR 45m of subordinated Tier 2 loan intended for the inclusion into additional capital to strengthen and optimize its capital structure. However, the company may only include the loan in calculation of additional capital according after obtaining an approval from the ECB. NLB noted that since such approval has not been granted by 23 December 2019 and it was not expected to be granted in the near future, the company decided to exercise the prepayment of the loan in January 2020.