LJUBLJANA (Slovenia), October 3 (SeeNews) – The European Bank for Reconstruction (EBRD) said on Thursday it plans to invest up to 50 million euro ($54.7 million) in a private unlisted Tier 2 subordinated bond issued by Slovenia’s Nova Kreditna Banka Maribor (NKBM), as part of a 90.4 million euro issuance.
The project supports the bank's green economy transition approach in Slovenia via NKBM allocating all EBRD funds towards funding certified commercial and residential projects, the EBRD said in a press release.
NKBM will also support renewable energy and energy efficient projects which meet the green economy transition eligibility criteria and capital optimization of a systemic financial institution in Slovenia, in light of its winning of the privatisation process of Abanka and its further organic expansion, the EBRD noted.
NKBM is the second largest Slovenian bank holding nearly 14% of total banking assets in the country. NKBM provides universal banking services and operates through a network of 50 branches in Slovenia and employs around 1,300 employees.
In June, NBKM signed with Slovenia’s sovereign holding company, SDH, an agreement to buy 100% of its peer Abanka for a total consideration of 511 million euro, with the completion of the acquisition subject to regulatory and other necessary approvals.
The value of the agreement includes a dividend in the amount of 67 million euro which was paid out to the seller in May, prior to the signing of the agreement, SDH said at the time.
NKBM is owned by investment funds affiliated with and managed by Apollo Global Management with an 80% stake and the European Bank for Reconstruction and Development with 20%.
A merger between Abanka and NKBM would create a bank that will hold around 22.5% market share. Slovenia's largest bank, Nova Ljubljanska Banka (NLB), holds a market stake of around 23%.
($=0.9139 euro)
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