Following the approval, the company will operate with a capital adequacy ratio of 17.6%.

NLB published an announcement on the Ljubljana Stock Exchange stating that obtained permission from the ECB to include the subordinated notes in the calculation of its Tier 2 capital.

As a reminder, in February NLB issued EUR 120m worth of subordinated notes intended for the inclusion into additional capital to strengthen and optimize its capital structure. 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.

Following the approval, the company will operate with a capital adequacy ratio of 17.6%, indicating an excess capital of roughly EUR 307m. Note that such a CAR is still quite above the requirement of 14.25%.