EBRD raises stake in NLB d.d.

By Axel  Reiserer

Privatisation of Slovenia’s largest bank completed

  • EBRD raises stake in Nova Ljubljanska banka d.d. (NLB) to 7.125%
  • Slovenia reduces its stake to 25 per cent plus one share
  • NLB is Slovenia’s largest bank

The EBRD has supported the successful conclusion of the re-privatisation of Nova Ljubljanska banka d.d. (NLB), Slovenia’s largest bank, by raising its stake in the lender to 7.125 per cent.

The Bank’s additional investment took place when the Slovenian Sovereign Holding (SDH) sold a 10 per stake in NLB on the London Stock Exchange on 20 June 2019 and the EBRD, alongside other institutional investors, acquired the offered shares.

With the additional sale, the government's stake in NLB decreases to 25 per cent plus one share, the level agreed with the European Commission. A first milestone was reached in November 2018 when the government sold 65 per cent of the bank in a public offering, which the EBRD joined as the second largest institutional investor.

The government of Slovenia committed to return NLB to majority private ownership under the European Union State Aid Procedure after the bank had received more than €2.3 billion in government support since 2013.

NLB is the largest Slovenian bank, holding approximately 23 per cent  of total banking assets in Slovenia. NLB provides universal banking services and has a strong presence through its core subsidiaries in five south east European countries. NLB has a network of 321 branches, approximately 6,000 employees and 1.8 million active customers.

The EBRD signed its first project in Slovenia in 1993 and has invested nearly € 1.1 billion in 86 projects in the country to date. The Bank’s activities cover all areas of the economy but are especially strong in the corporate, financial institutions and energy sectors. The EBRD had previously been a shareholder in NLB between 2002 and 2008.