NLB Bank Slovenia (f. P Reka, Bail-in-able Programme)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

On 12 July 2022, the EBRD invested EUR 46 million in 3NC2 senior preferred bonds issued by Nova Ljubljanska banka d.d. ("NLB"), a commercial bank incorporated in Slovenia, as a part of its EUR 300 million public bond issuance.

On 21 November 2022, EBRD invested further EUR 40 million in 10NC5 Tier2-eligible subordinated bonds, as a part of NLB's EUR 225 million public issuance that was listed on the Luxembourg Stock Exchange.

On 27 June 2023, the EBRD invested EUR 35 million in 4NC3 senior preferred green bond ('SP GB'), as a part of NLB's EUR 500 million debut benchmark public issuance. The bonds are listed on the Luxembourg Stock Exchange.

Project ID 53422

Status Signed

Location

Slovenia

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Valerija Pesec
Valerija.Pesec@nlb.si
+ 386 1 476 9122

Project ID 53422

Status Signed

Location

Slovenia

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

27 Apr 2022

Disclosure date

04 Aug 2022

NLB Bank Slovenia (f. P Reka, Bail-in-able Programme) (Slovenian) (PDF, 0.22MB)

Project description

Project objectives

The project supports the resilience and regulatory compliance of the largest bank in Slovenia, helps deepening the capital markets and delivers on the Bank's green agenda and national green economy priorities for Slovenia.

Transition impact

ETI Score:66

expected transition impact stems from the following qualities:

Resilient: The project will support NLB in strengthening its regulatory compliance and adding to the loss-absorption capacity, ultimately increasing its long-term sustainability. The project supports NLB in setting up its Green Bond Framework and positioning it as the first Slovenian commercial bank to issue such bonds during the life of the Project.

Green: NLB will be allocating 150% of EBRD's investment to GET-eligible projects for the bonds which are not labeled as green, further promoting the green agenda.

Client information

NOVA LJUBLJANSKA BANKA DD

NLB is the largest banking group in Slovenia with a nearly 30% market share by total assets (end-Q1 2023). NLB is classified as other systematically important institution (O-SII) in Slovenia and is part of NLB Group that has operations in five Western Balkan countries. Following the NLB's privatisation in 2018, the stake of Republic of Slovenia ("RoS") in NLB declined from 100% to 25% + one share. NLB is listed on Ljubljana and London Stock Exchange. NLB's credit rating is A3 (stable) by Moody's and BBB (stable) by S&P.

EBRD Finance Summary

EUR 121,000,000

Total project cost

EUR 1,025,000,000

Additionality

The project is additional as it (i) supports NLB to successfully raise sizable loss-absorbing funding given the disrupted global capital markets, (ii) supports NLB to widen its investor base, and (iii) contributes to NLB's green agenda.

Environmental & Social Summary

Categorised FI (ESP 2019): NLB is an existing client and will be required in relation to the project to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; implement the applicable EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending and submit Annual Environmental and Social Reports to the Bank. As for all capital market transactions, Cat. A projects are excluded. The funding allocated towards GET-eligible projects will need to follow the E&S Eligibility Criteria for Wind, Solar, Hydro, Bioenergy and Geothermal projects, if such projects are being financed.

Technical Cooperation and Grant Financing

EBRD has been engaged with NLB in helping them set up the Green Bond Framework by providing them a technical assistance ("TA") under the Green Bond Technical Cooperation Framework for Financial Institutions. The TA will include an initial assessment to identify any gaps, define an action plan and support its implementation.

Donor: SSF

Company Contact Information

Valerija Pesec
Valerija.Pesec@nlb.si
+ 386 1 476 9122

PSD last updated

28 Jul 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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NLB Bank Slovenia (f. P Reka, Bail-in-able Programme)

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)