NLB has once again marked a successful day on international capital markets by concluding the bookbuilding process for new issuance of EUR 500 million senior preferred notes with 4NC3 tenor to strengthen its MREL capacity. The notes obtained Baa1 rating with positive outlook by rating agency Moody’s.
The order book peaked at over EUR 1.9 billion, enabling NLB to tighten the pricing by 35 basis points to 115 basis points over mid-swap. This marked the narrowest spread achieved by NLB so far, showcasing the strength of the NLB Group’s credit profile, and the market confidence in the Group and its strategic ambitions.
The offering attracted notable participation from more than 110 prominent global and regional investors including asset managers, pension funds, insurance companies, financial institutions, and other investors. In terms of geographic allocations, investors came from EU, UK, Asia, US, and other markets.
BNP Paribas, BofA Securities Europe SA, Morgan Stanley Europe, Erste Group Bank AG and NLB acted as Joint Lead Managers and Joint Bookrunners and Raiffeisen Bank International as Senior Co-Lead Manager for the offering.
We are pleased and proud of the successful marketing of senior preferred notes in benchmark size, which were oversubscribed by more than 3 times. This reflects strong demand and confidence of investors in our bank’s business operations and strategy, as well as positive rating outlook of the notes by Moody’s. It also demonstrates investors’ perception of NLB as a regular issuer on the capital markets.
The notes are expected to be issued on 21 January 2025, their maturity date will be 21 January 2029, and the issuer will have the option for early redemption on 21 January 2028. The interest on the principal of the notes will accrue at the interest rate of 3.5% per annum.
NLB Communications
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