Slovenia's NLB Bank gets EUR 381 million capital boost

Slovenia's largest bank Nova Ljubljanska Banka (NLB) will this week issue new shares and a contingent convertible (CoCo) bond worth some 380 million euros ($473.90 million) to meet the EU's capital requirements, its Chief Executive Bozo Jasovic said on Wednesday.

Bozo Jasovic said the government, which owns some 55 percent of NLB, would buy the entire bond issue of 320 million euros ($399.07 million).

The new shares worth 61 million euros will be purchased by the Belgian banking and insurance group KBC, which, according to a calculation by Reuters, would lift its stake in NLB to nearly 34 percent from 25 percent.

"In this way the bank will have enough capital ... at least until the end of this year," Jasovic told reporters after a shareholders' meeting.