The issue will be considerably smaller than initially planned. In the prospectus, issued on 12 April, the bank said it would issue a total of EUR 75m worth of tier 2 notes. The ten-year bonds' maturity date is set at 6 May 2029.

The bonds will have a fixed coupon interest rate of 4.2% in the first five years. After that the fixed coupon interest rate is to be determined based on the sum of the then applicable reference interest rate and the fixed margin as defined at the issuance date of the notes.

The bank said already in February that it was considering different funding sources in order to acquire additional subordinate capital. The move is a part of NLB privatisation obligations Slovenia made to the EU for the 2013 bank bailout.

This is the first time NLB is seeking subordinate capital after subordinate bond holders were wiped out as part of the 2013 bail-in that accompanied the bailout.

Many of the wiped-out subordinate bond holders filed lawsuits and only recently has the state adopted legislation ensuring them effective legal remedy.