The EBRD invested €46 million in 3NC2 senior preferred bonds issued by Nova Ljubljanska banka d.d., Ljubljana ("NLB"), as part of its €300 million public bond issuance. The bonds are rated BBB (S&P) and listed on the Luxembourg Stock Exchange.
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.
ETI score: 66
The expected transition impact stems from 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.
Green: NLB will be allocating 150% of EBRD's investment to GET-eligible projects further promoting the green agenda.
NOVA LJUBLJANSKA BANKA DD
NLB is the largest banking group in Slovenia with ~27% market share by total assets (end-Q1 2022). 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. As of end-Q1 2022, NLB Group had total assets of €23.0 billion and total equity of €2.4 billion. Following 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 Baa1 (stable) by Moody's and BBB (stable) by S&P.
EBRD Finance Summary
Total Project Cost
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 and 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 will engage with NLB in helping them set up their Green/Sustainability 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.
Company Contact Information
+ 386 1 476 9122
PSD last updated
04 Aug 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.