2 July 2012
The NLB successfully completed the activities to ensure the Bank's capital adequacy so that the capital ratios are now reaching the required 9% of Core Tier 1. The requirements of the European Banking Authority (EBA) and the Bank of Slovenia to consolidate the Bank's capital structure have thus been met. The consolidated capital structure will allow the NLB to ensure long-term stability of its future operations.
The activities comprised a set of complex co-dependent and co-ordinated activities that required intensive co-operation of the state as the largest owner and the Bank itself. The activities also included the issue of a new hybrid loan, capital increase and restructuring of the existing subordinated instruments of the Bank.
The following contributed to the capital increase:
" the Republic of Slovenia by paying a new hybrid loan in the amount of EUR 320 million which is included in the calculation of the high-quality Core Tier 1 ratio;
" KAD and SOD by paying newly issued shares in the amount of EUR 61 million;
" NLB by realising profits from redeemed existing subordinated instruments and adopting some internal measures to release capital expenditure.
With the total increase of the NLB's capital position by more than EUR 500 million, the NLB successfully fulfilled the requirements of the EBA and the Bank of Slovenia to consolidate the Bank's capital structure and gained additional time for the owners to resolve the issue of future ownership of the Bank.
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