Slovene bank NLB launches 250 mln euro share issue
Baku, March 9 (AZERTAC). Slovenia`s largest bank Nova Ljubljanska Banka (NLB) launched a share issue on Monday worth up to 250 million euros ($350 million) to boost its capital ahead of new EU stress tests.
The new share issue, which will increase the number of the bank`s shares by up to 24.2 percent, will be offered at a price of 116 euros per share and will be available to existing investors until March 21, NLB said in a statement.
If any shares remain they will be offered to other investors in the second round of the sale from March 23 till March 30. The bank set no threshold for the success of the issue.
The unlisted NLB, which barely passed the first EU stress tests last July, had said it needed fresh capital to meet tougher EU capital requirements.
Banks must supply data to national regulators by mid-April for the purposes of the stress tests, and the European Banking Authority is expected to publish its findings at the end of June.
NLB said in February, the capital hike would raise its Tier 1 capital to 7.6 percent from just over 6 percent at present. It also said in February its group net loss doubled to 202 million euros last year, mainly due to non-performing loans to Slovenian companies.
The government controls 48.6 percent of NLB but said last year it planned to raise its stake in the bank to over 50 percent to ensure financial stability in the country.
Belgian banking and insurance group KBC (KBC.BR) owns 30.6 percent of NLB but had not yet said whether it would participate in the capital hike.
NLB has branches in Serbia, Montenegro, Kosovo, Bosnia, Macedonia, Italy, Germany, Austria and Bulgaria, but plans to sell its subsidiaries in a number of countries to increase its capital strength. [ID:nLDE6AB0UP] (Reporting by Marja Novak; Editing by Will Waterman) ($1=.7148 Euro)
Other news in this section
