NLB Once Again Successful on Capital Markets: Issues Senior Preferred Notes

May 22, 2024

NLB has once again marked a successful day on capital markets by concluding the bookbuilding process for new issuance of senior preferred notes of EUR 500 million to strengthen its MREL capacity. Transaction was very well received with rapidly growing orderbook with EUR 1.4 billion of investor interest. Orders came from reputable fund managers, international financial institutions, banks, insurance companies and other investors.

The IPT (Initial Price Thought) was set at MS+195 bps area, which is substantially tighter compared to NLB’s previous issuances, and during the day compressed by 30 bps to reach final pricing of MS+165 bps. Strong credit, performance and strategic ambitions of NLB Group were recognised by investors. Coupled with favourable market conditions the targeted issuance size was 2.8 times oversubscribed. More than 100 domestic, regional and international high-quality investors account participated.

“Hard work of a professional team and successful business operations are strengthening the trust in NLB, which is also reflected in today’s remarkable success and increasingly positive recognition of the bank amongst professional stakeholders,” commented NLB's CFO Archibald Kremser after the orderbook was closed.

The notes are expected to be issued on 29 May 2024, their maturity date will be 29 May 2030, and the issuer will have the option for early redemption on January 29 May 2029 (6NC5 structure). The interest on the principal of the notes will accrue at the interest rate of 4.5% per annum.

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