EFSE extends EUR 10m in a pioneering senior preferred facility to NLB Banka Sarajevo

Luxembourg and Sarajevo, 28 September 2023 – The European Fund for Southeast Europe (EFSE) has committed EUR 10m to NLB Banka Sarajevo through a ground-breaking Senior Preferred Unsecured Facility, marking it as the first such facility in the country. The facility is eligible under the Minimum Requirement for own funds and Eligible Liabilities (MREL), underscoring EFSE’s commitment to fostering innovative financial solutions to enhance the banking sector’s resilience and responsiveness to market needs. 

Additionally, EFSE has previously approved comprehensive ESG Technical Assistance (TA) to bolster NLB Banka’s implementation of ESG standards. The project underway demonstrates the bank’s dedication to embracing sustainable and responsible banking practices. More details on this collaboration can be found here. 

EFSE Board Chairperson Dr. Klaus Müller said: “EFSE’s relationship with NLB has grown stronger and stronger since it began in 2008. This pioneering senior facility will play a pivotal role in enabling NLB Banka to sustain its growth momentum while bringing its operations and services in line with European ESG reporting requirements.” 

Denis Hasanić, board member from NLB Sarajevo said: “As member of the UN-Convened Net-Zero Banking Alliance, NLB Group is strongly dedicated in implementation of ESG standard. The technical assistance in ESG risk management area provided by the EFSE Development Facility, to NLB d.d. Sarajevo, will support us and our clients to jointly develop our capacities, knowledge, and expertise in the implementation of ESG standards.”  

The NLB Banka signing was held last week in the context of the day-long summit “Investing for the Common Good: ESG Risks to Rewards” in Sarajevo by EFSE to shine a spotlight on the importance of baking sustainability into the fabric of local economies, specifically ensuring that micro, small and medium enterprises (MSMEs) are equipped to operate according to ESG principles. As this transaction with NLB Banka shows, EFSE remains steadfast in its mission to empower financial institutions in the Southeast Europe region, driving forward innovation, sustainability, and growth in the region’s financial sector.  

The NLB Banka signing took place at Sarajevo’ City Hall, known as Vijećnica. Nestled in the heart of the old town district, this architectural masterpiece stands as a testament to the city's vibrant history, providing the perfect setting for this important milestone.