The Slovenia Times

NLB Shareholders Endorse Remedial Capital Rise


The EUR 1.9m worth injection needs to be completed within 90 days. NLB will issue new shares at EUR 8.35 apiece, which are to be bought by the state-run Pension Fund Management (KAD) and Restitution Fund (SOD).

The two funds supplied NLB in early July with EUR 61m in fresh capital, but the European Commission assessed that the price was too high, so it ordered NLB a new recapitalisation by the same amount.

The shareholders of the majority state-owned bank also authorised the management to increase share capital in one or several steps by up to EUR 79.9m over the next five years.

The potential increase in capital will be intended exclusively for conversion into contingent convertible bonds that were issued in June.

The meeting also appointed two substitute members of the supervisory board. Gael de Pontbriand was named in place of KBC representative Jan Vanhevel while Marianne Okland replaces MatjaĆŸ Schroll as a representative of the state.

The proposal for a no-confidence vote against management board members David Benedek and Marko Jazbec was withdrawn following an agreement that the pair would finish their terms as on 31 December without severance pay.

NLB's biggest shareholder is the state, which together with KAD and SOD holds a combined 59%. The Belgian KBC bank owns roughly 22% in the Slovenian bank.


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