NKBM had issued two hybrid bonds worth a total EUR 150m to offer the holders of the bonds in mid-November the possibility that it buy them back or exchange them at a discount for non-subordinated securities with 5-year maturity.

The bank said today that EUR 98m worth of hybrid bonds would be bought back or exchanged on 14 December, provided that a nod comes from Banka Slovenije.

The discount will enable NKBM to create a profit, which will be used to strengthen capital adequacy as part of a series of efforts following this goal.

The state-owned bank is presently engaged in talks on selling its 51% stake in insurer Zavarovalnica Maribor to reinsurance company Pozavarovalnica Sava. Moreover shareholders will decide next Tuesday on a EUR 40.1m capital increase, which would also involve the state.

NKBM chairman Aleš Hauc recently stated that a successful sale of Zavarovalnica Maribor and the deal with the hybrid bonds might render the capital increase redundant.