Slovenian Sovereign Holding (SSH), which is coordinating the privatization process in the country, has signed a deal to sell Slovenia’s second-largest bank Nova KBM (NKBM) to US buyout fund Apollo Global Management and EBRD for EUR250m ($279m).

Under the deal, certain Apollo affiliated funds will acquire 80% of NKBM, while EBRD will own the remaining 20%.

Gernot Lohr, senior partner at Apollo, said: "We believe NKBM is a franchise asset, with a challenging recent history, that under the guidance of an experienced and committed owner such as Apollo can return to its past glory, delivering stability for all stakeholders, namely NKBM’s clients and customers, its employees, the local community and the State.

"We believe that NKBM has tremendous growth potential and we remain committed to cooperating with all stakeholders to deliver excellence in services to current and future clients."

EBRD managing director Nick Tesseyman said the EBRD will work closely with the new majority owner to support the restructuring of the bank which was rescued by the state in 2013.

Established in 1862, Nova KBM was bailed out by Slovenian government alongside peers NLB and Abanka in late 2013. It currently employs more than 1,700 employees.