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DUTB refinances its financial liabilities

Costs of financing to be 7 million EUR lower in 2018

Ljubljana, 8 December 2017 - DUTB signed long-term loan agreements to refinance its financial liabilities, substantially lowering DUTB's financing costs, which will be 7 million EUR lower in 2018. The funds will be used to fully repay DUTB's obligations stemming from the DUT03 bond in the amount of 422.9 million EUR, DUT04 bond in the amount of 125.8 million EUR, and the bank loan in the amount of 169 million EUR.

In order to refinance its liabilities falling due in mid-December this year, DUTB took out a 710 million EUR loan in a transparent and competitive process.

DUTB executed three loan agreements, with:

  • bank syndicate which includes Nova Ljubljanska banka d.d., Abanka d.d., Intesa Sanpaolo d.d., NKBM d.d. and Unicredit banka Slovenije, in the amount of 560 million EUR,
  • Sberbank banka d.d. in the amount of 100 million EUR, and
  • Erste Group Bank AG Vienna, in the amount of 50 million EUR.

The loans under the new loan agreements will be repaid quarterly, according to the loan repayment schedules. The last repayments fall due in mid-December 2022. DUTB also has the option of early repayment, which gives it flexibility in managing its liquidity until the end of 2022. The loans are secured with a state guarantee, subject to a 1% guarantee fee payable to the Republic of Slovenia.

In 2017 DUTB will therefore repay 1,107 million EUR of its financial liabilities, 710 million EUR of which will be settled with the aforementioned refinancing, and 397 million EUR will be repaid, of this as much as 269 million EUR will be repaid ahead of schedule.

The refinancing and repayment of financial liabilities marks an important step in the fulfilment of the BAMC's mission, as defined by the ZUKSB. With the lower interest rates, BAMC has reduced its future costs of financing, reduced its debt leverage and repaid invested funds, reducing the burden on the Republic of Slovenia and the taxpayers.

Not accounting for the refinancings, DUTB has so far repaid 1,057 million EUR in liabilities stemming from bonds and long-term loans (including the 360 million EUR for the merged Factor banka and Probanka). As a result, DUTB has more than halved its total debt of almost two billion euros. As of the end of 2017, DUTB's outstanding financial liabilities will amount to 877 million EUR.

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