Business News

Supervisors Approve NLB Cash Injection

Ljubljana, 16 December (STA) - The supervisory board of NLB gave its seal of approval Wednesday to the management's proposal for a EUR 250m cash injection through the issue of new preferred shares by Slovenia's largest bank.

The issue of fresh shares will begin on 28 December and run through 11 January 2010 in line with the plans approved today, the bank said in a statement.

Existing shareholders will be first in line to the new shares, with any remaining shares available to other investors, including the public, in a potential second round.

The supply of fresh capital is being sought by the management as a means of securing sufficient capital to respond to a potential increase in loan activity, and to provide sufficient provisions in the event of continued economic contraction, NLB said.

Other details of the new issue will be included in the prospectus that the bank will issue following approval from the Securities Market Agency.

Debating the current trends on key NLB markets, the bank said there were no signs of a significant upturn as yet. As a result, the bank will continue to pursue a "conservative policy of managing risk" and cost optimisation throughout its operations.

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