NLB

Capital/Financing Update • Dec 20, 2022

Category: Inside information

Published on: SEOnet

Published at:  19.12.2022 17:30

Published document ID: INI-836/22

INI-819/22

NLB, d. d., Ljubljana

Announcement of MREL eligible liabilities under article 62(5) of the ZRPPB-1

Pursuant to the Rules of the Ljubljana Stock Exchange and Article 158 of the Market in Financial Instruments Act, relating to the Article 17 of the Regulation (EU) No 596/2014, NLB d.d., Trg republike 2, 1000 Ljubljana announces:

In accordance with the requirements of paragraph 5 of article 62. of Zakon o reševanju in prisilnem prenehanju bank (ZRPPB-1), NLB d.d. is hereby publishing the composition of the own funds and eligible liabilities items by which it meets the minimum requirement for own funds and eligible liabilities (MREL) applicable to the NLB Resolution Group.

Data as of 30 November 2022	in EUR	Maturity	Order of prioirity under normal insolvency proceedings
1. Equity
1.1 Common Equity Tier 1:
- NLB Resolution Group capital	1,415,369,000	Without maturity	Junior to all other liabilities.
1.2 Additional Tier 1 Instruments:
- Additional tier 1 notes (ISIN SI0022104275)	82,000,000	Notes are perpetual and have no scheduled maturity date. The Issuer has the possibility for early redemption of the notes on any business day from 23 September 2027 to 23 March 2028 and on 23 September each year commencing on 23 September 2028	Senior to the Common Equity Tier 1 Instruments (point 1.1.) and junior to all other liabilities.
1.3 Tier 2 Instruments:
- Subordinated Tier 2 notes (ISIN SI0022103855)	45,000,000	6 May 2029, NLB d.d. has the option to redeem the notes on 6 May 2024	Senior to the Common Equity Tier 1 Instruments (point 1.1) and any Additional Tier 1 Instrument (point 1.2), junior to all other liabilities.
- Subordinated Tier 2 notes (ISIN XS2080776607)	120,000,000	19 November 2029, NLB d.d. has the option to redeem the notes on 19 November 2024
- Subordinated Tier 2 notes (ISIN XS2113139195)	120,000,000	5 February 2030, NLB d.d. has the option to redeem the notes on 5 February 2025
- Subordinated Tier 2 notes (ISIN XS2413677464)	225,000,000	28 November 2032, NLB d.d. has the option to redeem the notes on 28 November 2027
2. Eligible liabilities
2.1 Unsecured and unsubordinated claims arising from debt instruments:
- Senior preferred notes (ISIN XS2498964209)	300,000,000	19 July 2025; NLB d.d. has the option to redeem the notes  on 19 July 2024	Senior to the Tier 2 Instruments (point 1.3) and junior to all liabilities referred to in second paragraph of Article 230 of ZRPPB-1, points 1 to 7.
2.2 Other unsecured and unsubordinated claims:
- MREL eligible loan	30,000,000	30 March 2025; NLB d.d. has the option to repay the loan on 30 March 2024	Senior to the Unsecured and unsubordinated claims arising from debt instruments (point 2.1) and junior to all liabilities referred to in second paragraph of Article 230 of ZRPPB-1, points 1 to 6.
2.3 MREL eligible deposits (referred to in second paragraph, point 6):			Senior to the Other unsecured and unsubordinated claims (point 2.2) and junior to all liabilities referred to in second paragraph of Article 230 of ZRPPB-1, points 1 to 5.
- MREL eligible deposit	5,000,000	28 May 2024
- MREL eligible deposit	5,000,000	4 June 2024
- MREL eligible deposit	5,000,000	11 June 2024
- MREL eligible deposit	5,000,000	18 June 2024
- MREL eligible deposit	15,000,000	16 December 2024
- MREL eligible deposit	5,000,000	7 January 2025
- MREL eligible deposit	5,000,000	4 February 2025
- MREL eligible deposit	4,000,000	2 April 2025
- MREL eligible deposit	10,000,000	26 May 2025
- MREL eligible deposit	10,000,000	10 June 2025
- MREL eligible deposit	10,000,000	8 July 2025
- MREL eligible deposit	5,000,000	30 December 2025
- MREL eligible deposit	5,000,000	5 January 2026
- MREL eligible deposit	5,000,000	22 December 2026
- MREL eligible deposit	5,000,000	4 January 2027
2.4 MREL eligible deposits (referred to in second paragraph, point 5):
MREL eligible deposit	10,000,000	26 March 2024	Senior to the MREL eligible deposits (reffered to in second paragraph, point 6) (point 2.3) and junior to all liabilities referred to in second paragraph of Article 230 of ZRPPB-1, points 1 to 4.
MREL eligible deposit	20,000,000	29 July 2024
MREL eligible deposit	30,000,000	2 April 2025
Total amount of equity and eligible qualified liabilities	2,496,369,000

The applicable minimum requirement of own funds and eligible liabilities expressed as a percentage of the entity's total exposure rate calculated in accordance with articles 429. and 429.a of the Regulation 575/2013/EU.

As of 1 January 2024, NLB d.d. must comply with MREL requirement on a consolidated basis at resolution group level (consisting of NLB d.d. and other members of the NLB Group excluding banks) which amounts to 31.38% of Total Risk Exposure Amount (TREA) increased by applicable CBR; and 9.97% of the Leverage Ratio Exposure (LRE). NLB d.d. must provide a linear increase in capital and eligible liabilities towards MREL requirement and should therefore ensure its compliance with 25.19% of TREA increased by CBR (3.5%); and 8.03% of the LRE on 1 January 2022. The MREL requirement must be met at all times.

This announcement will be available on the NLB's website (www.nlb.si) as of 19 December 2022 for a period of at least 5 years.

Investor Relations

NLB d.d., Ljubljana

Date: 20.12.2022