Dexia Crédit Local Fixed Income Investor Presentation - December 2017
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Dexia Crédit Local Fixed Income Investor Presentation December 2017
Fixed Income Investor Presentation
Disclaimer
This presentation is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted, forwarded,
further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose and in particular, may not
be forwarded to any U.S. person (as defined in the U.S. Securities Act of 1933, as amended (the “Securities Act”)) or to any U.S. address or to
any person and/or in any jurisdiction in which it would be unlawful to do so. Any forwarding, distribution or reproduction of this document in whole
or in part is unauthorised. Failure to comply with such limitations may result in a violation of the Securities Act or the applicable laws of other
jurisdictions.
Nothing in this presentation constitutes an offer of securities for sale in the United States or in any other jurisdiction where it is unlawful to do so.
This investor presentation is for distribution only to persons who (i) are outside the United Kingdom, (ii) have professional experience in matters
relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"),
(iii) are persons falling within Article 49(2)(a) to (e) ("high net worth companies, unincorporated associations etc") of the Order or (iv) are qualified
investors (investisseurs qualifiés) as defined in Article L411-2 of the French Monetary and Financial Code (code monétaire et financier), (v) who
are both (a) investment professionals falling within section 31a (2) of the German Securities Trading Act (Wertpapierhandelsgesetz) and (b)
qualified investors within section 2 no. 6 of the German Securities Prospectus Act, or (vi) qualify as both (a) “professional investors” under the
Finnish Investment Funds Act 48/1999 and as (b) “qualified investors” under the Finnish Securities Markets Act 746/2012 (all such persons
together being referred to as "relevant persons"). This investor presentation is directed only at relevant persons and must not be acted on relied
on by persons who are not relevant persons.
This presentation includes expectations and/or forward-looking statements and assumptions related to the possible evolution of the business
environment. By their very nature, statements contained in this document involve inherent risks and uncertainties, both general and specific, and
risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place
undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the beliefs, plans,
objectives, expectations, anticipations, estimates and intentions expressed in such statements. Such important factors include, but are not limited
to, general economic conditions, general competitive factors, changes in the availability or costs of liquidity, general market conditions, changes in
laws and regulations (including accounting principles), changes in the policies of regulatory authorities, changes in interest rates and/or exchange
rates. In any event, forward-looking statements made herein speak only as to the date on which they are made, and Dexia does not undertake
any obligation to update or revise such statements as a result of new information, future events or otherwise.
This presentation contains unaudited figures. It also contains financial information of the Dexia SA Group. This financial information is not directly
comparable with the financial information of the Dexia Credit Local Group. Apart from in relation to Dexia Credit Local itself, investors will not have
any direct claims on the cash flows or assets of the Dexia SA Group and, apart from the Dexia Credit Local Group, members of the Dexia SA
Group have no obligation, contingent or otherwise, to pay amounts due under the Notes or to make funds available to Dexia Credit Local for these
payments.
2
Fixed Income Investor Presentation
Agenda
Section 1 Dexia Group Profile
Section 2 Dexia Crédit Local, Issuer of the Group
Section 3 Funding & Liquidity
Section 4 2013 Funding State Guarantee
3
Fixed Income Investor Presentation
Dexia Group Profile
1. Overview
2. A Group in Orderly Resolution
4
Dexia Group Profile
Overview
Dexia SA
94% State-owned banking institution in orderly resolution
As a significant bank, under the direct supervision of the European Central Bank within
the framework of the Single Supervisory Mechanism since 4 November 2014
A group in orderly resolution, as approved by the European Commission on 28 December
Status 2012; historically active in the financing of European public local sector
European Central Bank’s proportionate, pragmatic and tailored supervisory approach,
taking into account Dexia’s specific and unique situation as a bank in run-off, within the
current and forthcoming prudential framework
Shareholding structure 94.4% State-owned (Belgium: 50.02%, France: 44.40%)
To manage the balance sheet wind-down in order to preserve the financial interests of the
shareholders and the State guarantors; 3 strategic objectives
- Secure group’s liquidity at all times over the orderly resolution period
Mandate
- Ensure operational continuity to execute the orderly resolution plan
- Preserve capital to respect regulatory and legal requirements over the orderly
resolution period
Balance sheet1 EUR 199.4 billion
Solvency1 Common Equity Tier 1 ratio (Basel III) at 17.0% - Total Capital ratio at 18.0%
Staff1 1,082
(1) 30 June 2017 5
Dexia Group Profile
A Group in Orderly Resolution
Scope: Dexia SA 31/12/2008 31/12/2011 30 June 2017
Balance Sheet (EUR bn) 651 413 199
Tier 1 ratio Group Group
10.6% Restructuring 7.6% Resolution 17.0%1
Staff 36,700 22,460 1,082
Dexia Revised Orderly Resolution Plan, approved by the European Commission on 28 December 2012
Dexia revised orderly resolution plan setting the base of the orderly run-down of the Group’s activities
In essence, plan calling for the disposal of the saleable commercial franchises within a short deadline and the
management in run-off of other franchises without new commercial production, except for a limited number of exceptions
Support provided by the Belgian, French and Luxembourg States to allow the Group’s orderly resolution in the long run
Uniqueness of Dexia’s situation acknowledged by the European Central Bank
Capital increase of Dexia SA subscribed by Belgian Funding guarantee granted by the Belgian, French
and French States on 31 December 2012 and Luxembourg States on 24 January 2013
Issuance of preferential shares by Dexia SA in exchange for EUR 85 billion State Guarantee provided by Belgium,
the EUR 5.5 billion capital increase aimed at providing France and Luxembourg, allowing Dexia to fund the
sufficient capital base to carry the Group’s residual assets Group’s balance sheet
and to meet regulatory capital requirements over the period
of the resolution plan
(1) Common Equity Tier 1 ratio (Basel III); Total Capital ratio at 18.0% 6
Fixed Income Investor Presentation
Dexia Crédit Local, Issuer of the Group
1. Simplified Organizational Chart
2. Balance Sheet
3. Capital Base
4. Run-Off Portfolio
5. Asset Quality
7
Dexia Crédit Local, Issuer of the Group
Simplified Organizational Chart
Dexia SA
100%
Dexia Crédit Local1
(incl. New York, Dublin, Madrid, Lisbon branches) Dexia Crédit Local:
- Total B/S2: EUR 137.6 bn
- Banking subsidiary and main operational entity of the group
- Located in France
- Former flagship entity for the financing of local authorities and project finance
- Perimeter converging to the one of Dexia SA, in the frame of the orderly resolution
70% Dexia Crediop of the group with a total consolidated balance sheet of EUR 199 billion at the end
of June 2017; >99% of the group’s assets held by Dexia Crédit Local
Total B/S2: EUR 10.7 bn
- Simplified and unified governance with Dexia SA; members of Management Board
and Board of Directors of Dexia SA being members of those of Dexia Crédit Local
- Issuer of the group, benefiting from the State guarantee provided by Belgian,
French and Luxembourg States
100% Dexia Kommunalbank - International presence through branches in New York, Dublin, Madrid and Lisbon
Deutschland and subsidiaries in Germany, Italy and Israel
Total B/S2: EUR 32.0 bn
(1) Including DCL branches 8
(2) Contribution to the group’s consolidated balance sheet, retreated from intragroup items, on 30 June 2017
Dexia Crédit Local, Issuer of the Group
Balance Sheet and Capital Base
Indicative1 Run Off Balance Sheet 2014-2021
For illustration purpose only
Achieved Forecasts1
EUR 246 bn
EUR 229 bn
EUR 212 bn Natural asset amortization and
EUR 199 bn asset disposals
EUR ~127 bn
Total assets expected to be reduced by ~45% over the period 2014 – 2021 due to natural portfolio amortization and asset
disposals, not compensated by new assets origination2
Balance sheet total sensitive to exogenous factors, as the amount of cash collateral posted and fair value items may be
impacted by interest rate and exchange rate movements
Identification of assets available for disposals, in preparation of IFRS 9 implementation
No numerical targets set by European Commission in terms of asset disposal; deleveraging mainly driven by asset value
optimization
(1) Targeted figures as determined in the business plan of November 2012 (updated in June 2017) underlying the Orderly Resolution Plan approved by the European Commission
(2) Dexia Israel may continue its self-funded commercial activities with the purpose of preserving the commercial franchise until its divestment 9
Dexia Crédit Local, Issuer of the Group
Balance Sheet and Capital Base
1
Total capital ratio 2014-2021
For illustration purpose only Achieved Forecasts1
Deduction of
an additional IFRS 9 first
20% tranche application
of AFS
reserve in
2017 18.0%
17.2%
16.3% 16.8%
13.1% 13.4%
12.6% 14.7%
11.125 %
Solvency ratios as at 30 June 2017
Since 2014, downwards trend explained by the progressive deduction of 20% per annum of AFS reserve (last tranche
01/01/2018); filtering of sovereign AFS reserve removed in 20162
As from 2017, projections highly sensitive to assumptions on the regulatory and accounting framework such as application
of IFRS 9 or regulatory treatments
No impact in terms of distribution of breach of the combined ratio including the capital conservation buffer, given the EC
distribution restrictions already applying to the group in the frame the Orderly Resolution Plan, for burden sharing
purposes
(1) Targeted figures at year-end as determined in the business plan of November 2012 (updated in June 2017) underlying the Orderly Resolution Plan approved by the European Commission
(2) Following the regulation (EU) 2016/445 of the European Central Bank of 14 March 2016 on the exercise of options and discretions available in Union law (ECB/2016/4), application
of the national discretion allowing the filtering of sovereign AFS reserve until 1 October 2016
10Dexia Crédit Local, Issuer of the Group
Portfolio Breakdown
Portfolio1 distribution (EAD2 in %) Breakdown by maturity (EAD2 in %)
Italy UK
16% 15% Local public Sovereigns 19%
sector
53%
Germany
12% Financial
France institutions
17% 11%
Spain 8%
Project finance 8%
Japan 5%
ABS/MBS 3%
Portugal 2% Corporates 5%
USA
17% Other countries 8% Monoline 1%
Scope : Dexia Crédit Local, as at 30 June 2017 Scope : Dexia Crédit Local, as at 30 June 2017
Key portfolio figures Significant share of illiquid assets
Number of exposures 21,734 Long-term loans to the local public sector: ~63% of the portfolio with a
Number of debtors 6,311 maturity of more than 10 years
Commitments (EAD2) EUR 156.3 billion
Portfolio reflecting Dexia’s previous positioning of former leader in
o/w Loans EUR 78.0 billion public financing: significant exposure to local public sector, sovereigns
o/w Bonds EUR 65.9 billion and to project finance, generally linked to public sector (financing of
infrastructures, utilities or renewable energies)
(1) Including deposits with Central Banks (positive liquidity position of EUR 21.2 bn as at 30 June 2017, of which EUR 9.8 bn in the form of deposits with central banks)
(2) The Exposure at Default (EAD) corresponds to the best estimate of credit risk exposure at default for a counterparty. The EAD for a counterpart corresponds to the (i) balance
sheet assets' accounting book value gross of impairments, (ii) derivatives' mark-to-market plus regulatory add-ons and (iii) off-balance sheet items' nominal amounts times a Credit 11
Conversion Factor.Dexia Crédit Local, Issuer of the Group
Asset Quality
Exposures1 per rating (EAD2 in %)
A good quality asset portfolio
A
26% Assets well rated, ~91% investment grade, with a low cost of risk
Portfolio of significantly higher quality with respect to other run off entities in
Europe
AA Limited amount of Non Performing Loans (Fixed Income Investor Presentation
Funding & Liquidity
1. Targeted Funding Profile
2. Funding Tool Box
3. Focus on State Guaranteed Issuance
4. State Guaranteed Bonds Secondary Market Levels
13Funding & Liquidity
Targeted Funding Profile
Indicative1 Consolidated Funding Mix 2015-2021
For illustration purpose only
Funding Mix
Achieved Forecasts1 ■ State Guaranteed funding raised
EUR 229 bn under the State guarantee scheme
EUR 212 bn granted by the States of Belgium,
EUR 199 bn France and Luxembourg
■ Secured market funding (non
guaranteed) including secured repo
EUR ~127 bn transactions and covered bonds
(Pfandbriefe issued by DKD)
EUR 163 bn
EUR 146 bn
EUR 140 bn
■ Deposits and non-guaranteed
EUR ~ 81 bn
unsecured funding (mostly residual
funding raised before 2011)
In 2016-2017, reduced use of Central Bank funding, replaced by State guaranteed funding and secured market funding
As from 2017 onward, funding mix converging towards:
- 59 % of State guaranteed funding
- 41 % of non-guaranteed secured and unsecured market funding
Access to ECB funding still available up to EUR 5.2 bn2
(1) Figures determined in the business plan of November 2012 (updated in June 2017) underlying the Orderly Resolution Plan approved by the European Commission 14
(2) Until 31 December 2021.Funding & Liquidity
Funding Tool Box
State guaranteed funding Non guaranteed funding
Debt capital
Money market Money market Capital markets
markets
Maturity Up to 1 year 1 to 10 years Up to 1 year 1 year and longer
Commercial Papers, Bilateral and Triparty Bilateral and Triparty
Certificates of Repo, Commercial Repo,
Format Deposits, Deposits of
Bonds
Papers, Certificates Covered Bonds
institutional clients of Deposits (Pfandbriefe)
Currencies EUR, USD, GBP, CHF, CAD, JPY Mainly EUR, USD and GBP
Dexia Crédit Local,
Dexia Crédit Local Dexia Crédit Local
Issuer and DCL NY branch
Dexia Crédit Local
and DCL NY branch
DCL NY branch and
DKD
EMTN
ECD & ECP ECD & USCP EMTN
Documentation USCD & USCP
USMTN
GMRA GMRA
BMTN
EUR 22 bn
EUR 20 - 30 bn
Yearly targeted EUR 12 bn EUR ~3 bn
Regular issuance to maintain Regular issuance to achieve
outstanding of short term
issuance volumes outstanding of short term
guaranteed funding at 20 bn
Annual funding
program for 2017 non secured funding of EUR
Annual funding
program for 2017
as at end of 2017 1.6 bn and short term repos
of EUR 20.5 bn
15Funding & Liquidity
Focus on State Guarantee Issuance
Indicative1 Recourse to State Guarantee 2015-2021 Indicative1 State Guaranteed Funding Mix
For illustration purpose only For illustration purpose only
Realized Forecasts1
EUR 71.4 bn
EUR 70.5 bn GBP
Long term Short term
funding funding 15%
EUR 61.0 bn 33%
EUR ~57 bn
USD 25% 60% EUR
67%
In 2017, targeting State Guaranteed short term and long
term funding in the market for an average amount of EUR
equivalent 35 billion per year
2017 long term funding program of EUR 12 bn with a
planned execution through:
- Benchmark transactions to maintain liquid curves in
Euro, US Dollar and Sterling
- Private placements to meet specific investor demand
16
(1) Targeted figures as determined in the business plan of November 2012 (updated in June 2017), underlying the Orderly Resolution Plan approved by the European CommissionFunding & Liquidity
Focus on State Guarantee Issuance
2017 State Guaranteed Benchmarks (USD, EUR, GBP)
Order books reflecting Dexia positioning as an SSA
issuer
2.250% $1.5 bn bmk due Feb 2020 0.625% €2 bn bmk due Feb 2024 0.250% €2 bn bmk due June 2022
EUR 13.8 bn of long term funding raised in 2017 Reg S / 144A Reoffer: MS +23bps Reoffer: MS +9bps
Reoffer: MS+69bps / T+91.9bps
through 6 benchmark issues and private Issue date: 18th Jan 2017
Issue date: 3rd Feb 2017 Issue date: 2nd June 2017
placements:
- EUR 9.8 bn in public benchmarks
- EUR 4 bn in private placements
EUR 19.7 billion raised in 2017 via 311 short term
1.125% £1 bn bmk due June 2022 2.375% $2 bn bmk due Sept 2022 0.250% €2 bn bmk due June 2022
transactions executed under the CD and CP Reg S / 144A Reoffer: MS +9bps
formats: Reoffer: UKT +70bps
Issue date: 12th July 2017
Reoffer: MS+61bps / T+68.8bps
Issue date: 20th Sept 2017
Issue date: 2nd June 2017
- Average outstanding of EUR 27 bn
- Average initial maturity above 8.3 months
Aggregated benchmark distribution since 2015
France Benelux
Central 10% 10%
banks &
Fund Managers official Asia Middle East
32% institutions 13% & Africa 8%
28%
USA 7%
Germany
& Austria Nordic
Insurance &
14% countries 7%
pension funds 7%
Switzerland 3%
Banks 33% Other Europe 4%
UK & Ireland
24%
17Funding & Liquidity
State Guaranteed Bonds Secondary Market Levels
EUR USD
Spread vs MS (bps) Spread vs MS (bps)
18
Source: Bloomberg (update 10 October 2017)Fixed Income Investor Presentation
2013 Funding Government Guarantee
1. Key Terms
2. Mechanism
192013 Funding State Guarantee
Key Terms
Key terms of the funding State Guarantee
Explicit State guarantee1 granted to Dexia Crédit Local and DCL New York Branch
Limit of EUR 85 billion in principal2; interests and incidental amounts due are guaranteed beyond this limit
Shared 51.41% Belgium (AA / Aa3 / AA-), 45.59% France (AA / Aa2 / AA), 3.00% Luxembourg (AAA / Aaa / AAA)
Several, not joint, first demand, unconditional, irrevocable
2013 State guarantee rated AA / Aa3 / AA- and A-1+ / P- 1 / F1+3
Framework Jurisdiction
Effective as of 24 January 2013; replaces the 2011 Guarantee governed by Belgian Law
Guarantee
Maximum maturity of 10 years for securities issued under the Governmental and Parliamentary Approvals
guarantee and extended issuance period till 31 December
2021 European Commission: 28 December 2012
In agreement with the European Commission, fees paid on Belgium: Royal Decree of 18 October 2011 granting the
the outstanding guaranteed under the 2013 scheme set at 5 State’s guarantee for certain commitments of Dexia Crédit
bps Local SA, as amended by the Royal Decree of 19 December
2012 and ratified by the Law of 17 June 2013
Confirmation of 0% RW for State Guaranteed debt by
National Bank of Belgium and French banking supervisor France: article 4 of the finance law n° 2011-1416 of 2
(ACPR) November 2011, as amended by the finance law for 2012 of
29 December 2012
Eligible as HQLA level 1 under the EU Delegated Act on the
Liquidity Coverage Ratio Luxembourg: law of 16 December 2011
(1) 2013 funding guarantee agreement available on www.dexia.com/EN/shareholder_investor/dexia_debt/2013_state_guarantee/Documents/garantie_2013_EN.pdf
(2) Guaranteed obligations denominated in foreign currencies are converted into their euro equivalent amount on the date any new eligible financings are issued or entered into 20
(3) Rating reports: S&P (24/01/2013), Moody’s (18/02/2013 and 11/03/2014) and Fitch (25/10/2012, 26/03/2014 and 04/01/2017)2013 Funding State Guarantee
Mechanism
Process Scope
No acceleration of payment. Guarantee calls leading to Eligible Financing : funding raised in the form of
payment obligations of the States only in accordance with the securities and financial instruments, deposits or
normal payment schedule of the Guaranteed Obligations borrowings (Deposits, CP, CD, Notes, Bonds, Loans,
(“Pay as you go”) Interbank Overdraft and Fiduciary Deposits)
Call by any Third-Party Beneficiary or Security Holder, or any Eligible Investors : Qualified Investors (as per
proxy holder, agent, settlement institution or trustee acting for European Directive), Qualified Institutional Buyers,
the account of the former, on the Guarantee by simple notice Accredited Investors, Central Banks, Credit Institutions
delivered to each of the States within 90 days after the date of (as per European Directive), social security and
non-payment by DCL assimilated organizations, state-owned enterprises,
Third-Party Beneficiaries or Security Holders not required, in public or semi public authorities, supranational and
the context of securities and financial instruments, to exercise international institutions, financial holding companies,
the Guarantee, to make any demand against DCL, to take any investments firms, other approved or regulated,
action against DCL or to file claims in any insolvency financial institutions, insurance companies, retirement
proceedings relating to DCL institutions
Regular guarantee payment period of 5 days for all debt Available currencies : EUR, USD, GBP, CHF, CAD,
issuance except USD short term funding (< 365 days) which JPY
may benefit from a shorter 3 days period
Guarantee drawn up in French and in English, both languages
being equally binding
Guaranteed Debt outstanding to be followed on:
www.nbb.be/DOC/DQ/warandia/index.htm
21Fixed Income Investor Presentation
Contact Information
22Fixed Income Investor Presentation
Contact Information
Long Term Funding Financial Communication
Jean-Christophe Ricard Florent Masson
Head of Long Term Funding & Structured Funding Head of Financial Communication
Tel: +33 1 58 58 51 42 Tel: +33 1 58 58 82 48
jean-christophe.ricard@dexia.com florent.masson@dexia.com
Franck Pibouin Vincent Jacqmard
Long Term Funding Officer Investor Relations Officer
Tel: +33 1 58 58 51 46 Tel: +33 1 58 58 58 53 / +32 2 213 57 66
franck.pibouin@dexia.com vincent.jacqmard@dexia.com
Angela Garay
Long Term Funding Officer
Tel: +33 1 58 58 51 36
angela.garay@dexia.com
Short Term Funding
Hervé Foyan Djoudom
Head of Cash & Liquidity Management
Tel: +33 1 58 58 88 58
herve.foyandjoudom@dexia.com
Funding New York
Olivier Benatar
Funding Programs & Investor Relations
Tel: +1 212 705 07 16
olivier.benatar@dexia-us.com
23Dexia Crédit Local Fixed Income Investor Presentation Appendices
Appendices
Ratings1 (24 August 2017)
State Guaranteed Debt Long term Outlook Short term “In our view, Dexia Crédit Local’s liquidity has
improved, as its government-guaranteed
Dexia Crédit Local issuance programs let to a reduction of its
dependence on exceptional funding
Fitch AA- F1+ mechanisms and central bank loans. As such,
we have positively reassessed DCL’s stand-
Moody’s (P)Aa3 Stable P-1 alone credit profile to ‘bb’ from ‘b’”
Standard & Poors – 6 July 2016
Standard & Poor’s AA A-1+
“DCL’s BCA of b2 reflects Moody’s view that
the entity, which is managed in run-off mode
and has avoided default thanks to the provision
of extraordinary support from the governments
of Belgium, France and Luxembourg is slowly
and progressively improving its risk profile by
Senior Unsecured Debt Long term Outlook Short term
de-risking its large balance sheet of EUR 230
billion at year-end 2015, while maintaining the
Dexia Crédit Local operational continuity of the group.”
Moody’s – 18 April 2016
Fitch BBB+ Stable F2
“Regulatory capital is gradually eroded through
Moody’s Baa3 Stable P-3 the yearly negative net results. The 2012
capital injection had been calibrated as such to
Moody’s – Counterparty Risk (CR) Assessment Baa3(cr) P-3(cr) cover for the combination of reported net
losses and anticipated reduction in weighted
risks. Capitalisation should therefore remain
Standard & Poor’s BBB Stable A-2 sufficient if DCL’s resolution goes according to
plan.”
Fitch – 15 March 2016
(1) A severity rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, revision or withdrawal at any time by the assigning rating agencies
25Appendices
2016 State Guaranteed Public Benchmarks
State Guaranteed Benchmarks in EUR
0.75% €1.5 bn bmk due Jan 2023 0.2% €2 bn bmk due March 2021 0.04% €2bn bmk due Dec 2019
Reoffer: MS +32bps Reoffer: MS +25bps Reoffer: MS +13bps
Issue date: 14th Jan 2016 Issue date: 16th March 2016 Issue date: 1st June 2016
State Guaranteed Benchmarks in USD
1.875% $1.75bn bmk due Mar 2019 1.875% $1.25bn bmk due Sept 2021
Reg S / 144A Reg S / 144A
Reoffer: MS+83bps / T+85bps Reoffer: MS+79bps / T+80bps
Issue date: 20th Jan 2016 Issue date: 15th Sept 2016
State Guaranteed Benchmarks in GBP
1.125% £300m bmk due Feb 2019 0.875% £500m bmk due Sept 2021
Reoffer: UKT 03/2019 +90bps Reoffer: UKT +75bps
Issue date: 3rd Mar 2016 Issue date: 5th Oct 2016
26Appendices
18 January 2017: 3Y USD State Guaranteed benchmark
On 10th January 2017, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Strong investors interests, allowing to close the books with a final pricing of MS+69bps
Central banks accounting for 35% of the order book, Asset Managers for 34% and Banks for 27%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch) Asia 10%
Senior, unsecured, EMEA
Instrument Nordic 12% Banks
unsubordinated, guaranteed 10%
27% Central
Amount USD 1,500,000,000 Other EU 3% Banks
35%
Launch 10 January 2017 UK & Swiss 5%
Ireland
Settlement 18 January 2017 19%
Maturity 18 February 2020
Asset Pension
Coupon 2.250%, semi-annual US 41% Managers funds &
34% Insurance
R/O spread MS + 69 bps / UST + 91,9 4%
bps
27Appendices
03 February 2017: 7Y EUR State Guaranteed benchmark
On 26th January 2017, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Strong geographical granularity of the order book
Banks accounting for 42% of the order book, Central Banks for 25% and Asset Managers for 25%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Asia 10%
Senior, unsecured, Southern Europe 12% Banks
Instrument unsubordinated, guaranteed Nordic 9% 42% Central
Amount EUR 2,000,000,000 Swiss 4% Banks
France 13%
UK & Ireland 3% 25%
Launch 26 January 2017 Other 1%
Settlement 03 February 2017
Maturity 03 February 2024 BeNeLux
18% Pension
Coupon 0.625 % Asset funds &
Germany & Austria 30% Managers Insurance
R/O spread MS + 23 bps 25% 8%
28Appendices
16 May 2017: 5Y EUR State Guaranteed benchmark
On 24th May 2017, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Great granularity of the order book
Strong interest from Banks (34%), Asset Managers (32%) and Central Banks & Official Institutions (25%)
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating Nordics
(Moody’s / S&P / Fitch)
15% Benelux
Senior, unsecured, 13%
Instrument unsubordinated, guaranteed UK & Banks Central
Ireland 34% Banks &
Amount EUR 2,000,000,000 16% Official
Institutions
Asia
Launch 24 May 2017 25%
12%
Settlement 02 June 2017
Germany
Maturity 02 June 2022 France & Austria Pension
23% Asset
25% Managers Funds and
Coupon 0.250% Italy 6% Insurance
32%
9%
R/O spread MS + 9 bps Other 1% Switzerland 3%
29Appendices
12 July 2017: 5Y GBP State Guaranteed benchmark
On 4th July 2017, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
High quality of the order book, in a challenging market environment
Order book composed of Fund Managers (47%), Banks (32%) and Central Banks & Official Institutions (14%)
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch) Asia
Senior, unsecured, 6% Other
Instrument unsubordinated, guaranteed Europe Fund Banks
UK 13% Managers 32%
Amount GBP 1,000,000,000 76% 47%
Launch 4 July 2017 Switzerland
5% CB & OI
Settlement 12 July 2017 14%
Maturity 15 June 2022
Insurance
Coupon 1.125%
& Pension
GILT + 70 bps Fund 7%
R/O spread
30Appendices
20 September 2017: 5Y USD State Guaranteed benchmark
On 12th September 2017, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Strong investors’ demand for the transaction, with a significant over supply
Order book composed of Fund Managers (39%), Central Banks & Official Institutions (29%), followed by Banks (28%),
with a large geographic distribution
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Senior, unsecured, Asia CB & OI
Instrument Europe
unsubordinated, guaranteed 21% 29% Banks
18%
28%
Amount USD 2,000,000,000
Launch 12 September 2017
UK Insurance
Settlement 20 September 2017 17% & Pension
Fund 3%
Maturity 20 September 2022 Other 1%
USA Switzerland 3% Fund
Coupon 2.375% 38% Middle East & Managers
Africa 3% 39%
R/O spread MS + 61 bps
31Appendices
Private Placement Activity since 2015
Selection of non-benchmark State Guaranteed transactions Private Placement
Activity since 2015
USD 36%
€350mn tap due Nov 2024 €500mn due June 2020 $575mn due June 2018
Coupon: 1.25% Coupon: 3mEuribor+10 bps RegS / 144A
Issue date: 27th Jan 2015 Coupon: 3m$Libor+20 bps
Issue date: 5th June 2015 Issue date: 5th June 2015
EUR 54% GBP 10%
€500mn due Oct 2025 $1bn due March 2018 €150mn due May 2021
Coupon: 1.25% Coupon: 3m$Libor + 60bps Coupon: 3mEuribor+40 bps
Issue date: 27th Oct 2015 Issue date: 23rd March 2016 Issue date: 13th May 2016
5 Years
25%
32Appendices
Results H1 2017 – Dexia SA
Recurring elements : -171 m€
− EUR -85 m€ of taxes and contributions booked on 1 January (IFRIC 21)
− Strengthening of provisioning on Puerto Rico (-89 m€)
− Excl. exceptional items, cost trajectory under control
Net result
-296 m€ Accounting volatility : -80 m€
Group share
− Reflect of unfavourable market conditions
Non recurring elements : -46 m€
− Gain derived from active balance-sheet management (EUR +12 m)
− Negative impact of the unwinding of accounting hedging relationships on
exposures to Puerto Rico, with a view to selling them (EUR -52 m)
Trend mainly driven by the reduction of asset portfolios (EUR -8.9 bn) under
the effect of natural amortisation and asset disposals
199.4 bn€
Balance Decrease of fair value of assets and derivatives (EUR -6.5 bn)
sheet -13.4 bn€ Decrease by EUR -3.0 bn of the cash collateral paid by Dexia
vs. 31/12/2016
Increase of cash placed with central banks (EUR +6.5 bn)
Decrease in RWAs offsetting the impact of the phased-in deduction of the AFS
18.0% reserve
Solvency Solvency remaining sensitive to exogenous market parameters (mainly
vs. 16.6%
on 31/12/2016 credit spreads)
Data as at 30 June 2017 33Appendices
Disposal Process
Disposal of major franchises Status Main characteristics
Dexia Bank Belgium (renamed Belfius) Closed 20/10/2011 Sale price EUR ~4 billion
RBC Dexia Investor Services Closed 27/07/2012 Sale price EUR 838 million
DenizBank Closed 28/09/2012 Sale price EUR 3,024 million
Balance sheet reduction of EUR ~18 billion
Banque Internationale à Luxembourg Closed 05/10/2012 Sale price EUR 730 million
Scope of disposal excluding Legacy Division assets and
holdings in Parfipar and RBC Dexia
Balance sheet reduction of EUR ~12 billion
Société de Financement Local Closed 31/01/2013 Disposal for 1 euro
No guarantee given on assets sold
Balance sheet reduction of EUR ~84 billion
Dexia Asset Management Closed 3/02/2014 Sale price EUR 380 million
Other disposals Status Sale price
DKB Polska Closed 13/03/2013 EUR 13.7 million
Dexia Bail Closed 02/04/2013 EUR 1 million
Public LLD Closed 06/09/2013 EUR 0.4 million
Sofaxis Closed 30/09/2013 EUR 136 million
Domiserve Closed 04/10/2013 EUR 2.3 million
ADTS Closed 06/12/2013 EUR 1.2 million
Popular Banca Privada Closed 19/02/2014 EUR 49.2 million
34Dexia Crédit Local Fixed Income Investor Presentation
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