Dexia Crédit Local Issuer with an Explicit State Funding Guarantee - Fixed Income Investor Presentation
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Dexia Crédit Local Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation September 2019
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 not authorized. 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 Group Profile & State Funding Guarantee
Section 2 Dexia Crédit Local, Issuer of the Dexia Group
Section 3 Funding & Liquidity
3
Fixed Income Investor Presentation
Dexia Group Profile & State Funding Guarantee
1. Overview of a Group in Orderly Resolution
2. … with an explicit State Funding Guarantee
4
Dexia Group Profile
Overview of a Group in Orderly Resolution
Dexia SA 99.6% State-owned banking institution in orderly resolution
Status Formerly active in financing European public local sector
Since 2012, a group in orderly resolution, as approved by the European Commission
Direct supervision by the European Central Bank within the framework of the Single
Supervisory Mechanism since 4 November 2014
99.6% State-owned (Belgium: 52.78%, France: 46.81%)
Fully owns Dexia Crédit Local, Group’s operating entity and State guaranteed issuer
To manage the balance sheet wind-down in order to preserve the financial interests of the
shareholders and the State guarantors; 3 strategic objectives over the resolution period:
Mandate
- Secure group’s liquidity at all times
- Ensure operational continuity
- Preserve capital and observe regulatory requirements
5
Dexia Group Profile
Overview of a Group in Orderly Resolution
Dexia Revised Orderly Resolution Plan, approved by the European Commission on 28 Dec. 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 identified commercial franchises and the management in run-off of other
franchises without new commercial production, with 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
State Support under the form of
A EUR 5.5 billion capital increase subscribed by the Belgian and French States on 31 Dec. 2012
An explicit funding guarantee granted by the Belgian, French and Luxembourg States on 24 Jan. 2013
31/12/2011 31/12/2014 30/06/2019
Entry into resolution
Capital increase
Explicit funding guarantee
Mandatory divestment of commercial franchises completed
Balance Sheet (EUR bn) 413 247 135
Staff 22,460 1,265 672
6
Dexia Group Profile
… with an explicit State Funding Guarantee
Explicit funding guarantee granted by the Belgian, French and Luxembourg States on 24 Jan. 2013
Features of the 2013 Guarantee1
Explicit State guarantee2 granted to Dexia Crédit Local and DCL New York Branch
Ceiling of EUR 85 billion in principal3; 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+4
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
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) Further details on the Guarantee’s mechanism available in the Appendices of this document
(2) 2013 funding guarantee agreement available on www.dexia.com/EN/shareholder_investor/dexia_debt/2013_state_guarantee/Documents/garantie_2013_EN.pdf
(3) 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 7
(4) Rating reports: S&P (22/06/2018 and 17/07/2018), Moody’s (17/04/2018 and 26/11/2018) and Fitch (04/01/2017 and 09/01/2018)
Fixed Income Investor Presentation
Dexia Crédit Local, Issuer of the Dexia Group
1. Simplified Organization Chart
2. Balance Sheet
3. Solvency
4. Portfolio Breakdown and Asset Quality
8
Dexia Group Profile
Simplified organisation chart
Dexia SA
100%
Dexia Crédit Local
(incl. New York & Dublin branches) Dexia Crédit Local:
- Banking subsidiary and main operating 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
of the group with a total consolidated balance sheet of EUR 135 billion at the end
70% of June 2019; >99% of the group’s assets held by Dexia Crédit Local
Dexia Crediop
(Italy)
- 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 the Belgian,
French and Luxembourg States
- International presence through branches in New York and Dublin, and one
remaining subsidiary in Italy
9
Dexia Crédit Local, Issuer of the Dexia Group
Balance Sheet
Indicative1 Run Off Balance Sheet 2015-2028
For illustration purpose only (in EUR billion)
Achieved Forecasts1
Natural asset amortization and
asset disposals
135
Total assets expected to be reduced by more than ~50% over the period 2018 – 2028 due to natural portfolio amortization
and asset disposals, not compensated by new assets origination
Balance sheet 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
No numerical targets set by the 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 April 2019) underlying the Orderly Resolution Plan approved by the European
Commission
10Dexia Crédit Local, Issuer of the Dexia Group
Solvency
Total capital ratio 2015-2028
For illustration purpose only
Achieved Forecasts1
9.875 %
Capital measures undertaken since 2016 aiming at enhancing capital ratios
Positive impact of IFRS 9 first time application of EUR ~2.7 bn on regulatory capital in 2018 (~500 bps on solvency ratios)
As from 2018, projections highly sensitive to assumptions on the regulatory and accounting framework
No impact in terms of distribution of breach of the combined ratio (SREP requirement) 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 April 2019) underlying the Orderly Resolution Plan approved by the
European Commission
11Dexia Crédit Local, Issuer of the Dexia Group
Portfolio Breakdown and Asset Quality
Portfolio1 distribution Maturity breakdown
France
19%
Local public Sovereigns 23% A
sector 31%
North 49%
America
Italy 15% Financial
21% BBB
institutions
37%
9%
Spain 7% AA
Project finance 9%
Japan 6% 10%
Corporates 6% AAA
UK Portugal 4% BB 6%
ABS/MBS 1% 15% B and below 1%
22% Other countries 6% Monoline 1%
Non performing (D) 1,4 %
Non ratedFixed 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 2015-2028
For illustration purpose only
Achieved Forecasts1
Funding Mix
EUR 229 bn
■ State Guaranteed funding
EUR 212 bn
raised under the State
guarantee scheme granted by
EUR 181 bn the States of Belgium, France
and Luxembourg
EUR 159 bn
EUR 135 bn
■ Secured market funding (non
guaranteed) - secured repo
transactions
EUR 163 bn
EUR 146 bn
EUR < 65 bn ■ Non-guaranteed unsecured
EUR 125 bn
EUR 106 bn
funding (mostly residual funding
EUR < 50 bn
EUR 85 bn
raised before 2011)
No Recourse to Central Bank funding since end-2017
As from 2018 onward, funding mix converging towards:
- ~70 % of State guaranteed funding
- ~30 % of non-guaranteed secured and unsecured market funding
Entities in run-off no longer eligible to Eurosystem2 funding as from 1 January 2022, access to ECB funding remaining available
up to EUR 5.2 bn for Dexia until 31 December 2021
(1) Figures determined in the business plan of November 2012 (updated in April 2019) underlying the Orderly Resolution Plan approved by the European Commission
(2) Please refer to press release dated 21/07/2017, available on www.dexia.com 14Funding & 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
Format Certificates of Bonds
Repo Repo
Deposits
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 and DCL NY branch
EMTN
NEU CP & ECP
Documentation USCD & USCP
USMTN GMRA GMRA
NEU MTN
EUR 17 bn EUR 7 bn EUR 6 bn EUR 2 bn
Yearly targeted Annual funding
Regular issuance to maintain
issuance volumes Regular issuance to maintain
an average outstanding of
Annual funding
program for 2019 of average of EUR 6 bn in
program for 2019 of which
EUR 0.6 bn of repo and EUR
EUR 17 bn in 2019 2019 1.4 bn of collateral switch
15Funding & Liquidity
Focus on State Guarantee Issuance
Indicative1 Recourse to State Guarantee 2015-2028 Indicative1 State Guaranteed Funding Mix
For illustration purpose only For illustration purpose only
Realized Forecasts1
Long term GBP
funding
15%
29%
30% EUR
55%
USD
71%
Short term
funding
In 2019, targeting State Guaranteed short term and long
term funding in the market for an average amount of EUR
equivalent 24 billion per year
2019 long term funding program of EUR 7 bn with a
planned execution through:
- Benchmark transactions to maintain liquid curves in
Euro, US Dollar and Sterling
- Private placement activity currently inactive
(1) Targeted figures as determined in the business plan of November 2012 (updated in April 2019), underlying the Orderly Resolution Plan approved by the European Commission
16Funding & Liquidity
Focus on State Guarantee Issuance
2019 State Guaranteed Benchmarks1
Order books reflecting Dexia positioning as an SSA
issuer 0.625% €1.5 bn bmk due Jan 2026 2.875% $1.25bn bmk due Jan 2022
Reoffer: MS +24bps Reg S / 144A
Issue date: 17th Jan 2019 Reoffer: MS +25bps / T+37bps
EUR 7.2 bn of long term funding raised in 2018 Issue date: 29th Jan 2019
through 5 benchmark transactions in EUR, US
dollar and Sterling
EUR 24.7 billion raised in 2018 via 743 short term
transactions executed under the CD and CP
formats:
0% €2bn bmk due May 2024
- Average outstanding of EUR 18.5 bn Reoffer: MS +5bps
Issue date: 29th May 2019
- Average initial maturity above 8.5 months
Aggregated benchmark distribution since 2015
Asia
Central 13% Benelux
10%
banks & Germany
Banks 33% official & Austria
Nordic
institutions 13%
countries 8%
28%
USA 8%
France
Insurance &
14% Middle East & Africa 5%
pension funds 5%
Others 1% Switzerland 4%
Other Europe 4%
Fund Managers UK & Ireland
33% 21%
17
(1) Benchmarks issued in 2018 are summarized in the appendicesFunding & Liquidity
State Guaranteed Bonds Secondary Market Levels
EUR USD
Spread vs MS (bps) Spread vs MS (bps)
18
Source: BloombergFixed Income Investor Presentation
Contact Information
19Fixed Income Investor Presentation
Contact Information
Funding & Treasury Financial Communication & Investor Relations
Jean-Christophe Ricard Vincent Jacqmard
Head of Funding & Treasury Investor Relations Officer
Tel: +33 1 58 58 51 42 Tel: +33 1 58 58 58 53 / +32 2 213 57 66
jean-christophe.ricard@dexia.com vincent.jacqmard@dexia.com
Franck Pibouin Fabienne Carlier
Long Term Funding Officer Head of Communication & Press Relations
Tel: +33 1 58 58 51 46 Tel: +32 2 213 57 39
franck.pibouin@dexia.com fabienne.carlier@dexia.com
David Hermenier
Long Term Funding Structurer
Tel: +33 1 58 58 51 77
david.hermenier@dexia.com
Funding New York
Olivier Benatar
Head of Funding & Markets and Investor Relations
Tel: +1 212 705 07 16
olivier.benatar@dexia-us.com
20Dexia Crédit Local Issuer with an Explicit State Guarantee Fixed Income Investor Presentation Appendices
Appendices
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
22Appendices
Ratings1
State Guaranteed Debt Long term Outlook Short term
Dexia Crédit Local
“Dexia Credit Local is progressing well with its
Fitch AA- F1+ orderly wind-down: Accelerated asset sales,
combined with favorable market conditions,
Moody’s (P)Aa3 Stable P-1 have helped strengthen its capital well beyond
our expectations.’”
Standard & Poors – 22 June 2018
Standard & Poor’s AA A-1+
“Based on the projected financials presented in
its orderly resolution plan, the group should
maintain a regulatory capital ratio above the
minimum requirements over the runoff period.”
Moody’s – 17 April 2018
Senior Unsecured Debt Long term Outlook Short term
Dexia Crédit Local “Belgium and France's sizeable investment in
Dexia (group's equity, and funding guarantees
granted to DCL for up to EUR85bn) represent a
Fitch BBB+ Stable F1 very strong incentive for the authorities to
provide additional support, if required. ”
Moody’s Baa3 Stable P-3 Fitch – 09 January 2018
Moody’s – Counterparty Risk (CR) Assessment Baa3(cr) P-3(cr)
Standard & Poor’s BBB Stable A-2
(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
23Appendices
2018 State Guaranteed Public Benchmarks
State Guaranteed Benchmarks in EUR
0.5% €2 bn bmk due Jan 2025 0.25% €2 bn bmk due June 2023
Reoffer: MS Flat Reoffer: MS -6 bps
Issue date: 17th Jan 2018 Issue date: 1st June 2018
State Guaranteed Benchmarks in USD
3.25% $1.5bn bmk due Sept 2023
2.5% $1.5bn bmk due Jan 2021
Reg S / 144A
Reg S / 144A
Reoffer: MS+31 bps / T+43 bps
Reoffer: MS+27 bps / T+45,9 bps
Issue date: 26th Sept 2018
Issue date: 25th Jan 2018
State Guaranteed Benchmarks in GBP
1,625% £500M bmk due Dec 2023
Reoffer: UKT Sept 23 + 55bps
Issue date: 21st March 2018
24Appendices
8 January 2018: 7Y EUR State Guaranteed benchmark
On 9th January 2018, launch of a 7-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Books closing at short notice consecutively to investors’ strong appetite
Asset Managers accounting for 38% of the order book, Banks for 34%, followed by Central Banks with 22%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating BeNeLux
(Moody’s / S&P / Fitch)
11%
Senior, unsecured, Banks
Instrument unsubordinated, guaranteed Germany & 34%
Austria UK & Ireland 8% Central
Amount EUR 2,000,000,000 24% Banks
Asia 7% 22%
Launch 9 January 2018
Settlement 17 January 2018 Nordic 6% Pension
funds &
Maturity 17 January 2025 Italy 5% Insurance
France 34%
Swiss 5% 6%
Coupon 0.50 % Other 1% Asset
Managers
R/O spread MS flat 38%
25Appendices
17 January 2018: 3Y USD State Guaranteed benchmark
On 17th January 2018, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
A high quality order book in excess of USD 4.2bn driven by real money demand
Asset Managers accounting for 45% of the order book, Banks for 26% and Central Banks for 24%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch) UK &
Ireland Nordic 10%
Senior, unsecured, Banks Central
Instrument unsubordinated, guaranteed 18% Banks
26%
Asia 12% 24%
Amount USD 1,500,000,000
Launch 17 January 2018
EMEA 8% Pension
Settlement 25 January 2018
funds &
Swiss 7% Insurance
Maturity 25 February 2021 US 41% 4%
Other EU 4% Asset
Coupon 2.50%, semi-annual Managers
45% Others 1%
R/O spread MS + 27bps / UST + 45.9
bps
26Appendices
13 March 2018: 5Y GBP State Guaranteed benchmark
On 13th March 2018, launch of a Dec-2023 senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Demand driven by central banks and official institutions (47%), the rest being split between fund managers and insurers
(28%) and banks (25%)
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Europe 14%
Senior, unsecured, Banks
Instrument unsubordinated, guaranteed 25%
Amount GBP 500,000,000 Central
UK & Banks&
Launch 13 March 2018 Ireland Official
48% institutions
Settlement 21 March 2018
47%
8 December 2023 Asia 38%
Maturity
Pension
Coupon 1.625%, annual funds &
Insurance
R/O spread UKT 2.25% 09/23+ 55bps 28%
27Appendices
24 May 2018: 5Y EUR State Guaranteed benchmark
On 24th May 2018, launch of a Jun-2023 senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Demand driven by fund managers and insurers (47%), the rest being split between banks (36%) and central banks &
official institutions (16%)
Large orderbook in excess of EUR 2.3 bn
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA- Corporates
Issue rating Central
(Moody’s / S&P / Fitch) 1%
Rest of Europe 14% Banks&
Senior, unsecured, Official
Instrument unsubordinated, guaranteed Banks institutions
36% 16%
Amount EUR 2,000,000,000 Asia 8%
France
Launch 24 May 2018 65%
Benelux 13%
Settlement 1 June 2018
Maturity 1 June 2023 Fund
Managers
Coupon 0.250%, annual & Insurance
47%
R/O spread MS - 6bps
28Appendices
18 September 2018: 5Y USD State Guaranteed benchmark
On 18th September 2018, Dexia Crédit Local successfully priced a US$1.5bn 5-year State Guaranteed Bond offering at
MS+31 bps
Announced with Initial Price thoughts of MS + low 30s bps area, the transaction generated an order book in excess of
US$2.3bn
Banks accounting for 48% of the order book, Asset Managers for 25% and Central Banks for 23%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA- Southern Europe
Issue rating Others 4%
(Moody’s / S&P / Fitch) 4%
Others 4%
Senior, unsecured, Germany 5%
Instrument unsubordinated, guaranteed Central
US 25% Banks
Amount USD 1,500,000,000 Switzerland
14% 23%
Banks
Launch 18 September 2018 48%
Settlement 26 September 2018 Asia 18%
Maturity 26 September 2023 Nordic 15%
Asset
Coupon 3.250%, semi-annual UK & Managers
Ireland 25%
R/O spread MS + 31bps / UST + 43bps
17%
29Appendices
8 January 2019: 7Y EUR State Guaranteed benchmark
On 9th January 2019, launch of a 7-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
High quality order book, largely in excess thanks to investors’ strong appetite
Banks accounting for 46% of the order book, followed by Asset Managers for 28% and Central Banks for 17%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Senior, unsecured,
Instrument unsubordinated, guaranteed
Amount EUR 1,500,000,000
Launch 9 January 2019
Settlement 17 January 2019
Maturity 17 January 2026
Coupon 0.625 %
R/O spread MS + 24bps
30Appendices
16 January 2019: 3Y USD State Guaranteed benchmark
On 17th January 2019, launch of a 3-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Very balanced geographic distribution with 39% orders coming from EMEA, 39% in Asia and 22% from the US
Central Banks and Official Institutions accounting for 53% of the order book, followed by Asset Managers with 22% and
Banks with 21%.
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Senior, unsecured,
Instrument unsubordinated, guaranteed
Amount USD 1,250,000,000
Launch 17 January 2019
Settlement 29 January 2019
Maturity 29 January 2022
Coupon 2.875 % Fixed s/A
R/O spread MS + 25bps / UST + 37bps
31Appendices
24 April 2019: 3Y GBP State Guaranteed benchmark
On 24th April 2019, launch of 3-year GBP senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Largest order book ever observed on a Dexia GBP deal, attracting more than GBP 2.2bn of investor’s interest
Geographic distribution articulated around 34% orders coming from UK and Ireland, 20% GAS, 18% Nordics, 16% Other
Europe and 10% Asia
Main stay of the transaction for the Banks with 44% of the allocation, followed by 30% to Central Banks & Official
Institutions and 23% to Fund Managers
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Senior, unsecured,
Instrument unsubordinated, guaranteed
Amount GBP 1,000,000,000
Launch 25 April 2019
Settlement 7 May 2019
Maturity 7 December 2022
Coupon 1.375 % Fixed s/a
R/O spread UKT Sept 22 + 61bps
32Appendices
21 May 2019: 5Y EUR State Guaranteed benchmark
On 21th May 2019, launch of a 5-year senior unsecured guaranteed transaction under the 2013 State Guarantee
Mechanism
Larger order book ever achieved, with immediate responses from investors with IoIs building rapidly
Banks accounting for 47% of the order book, followed by Central Banks for 29% and Asset Managers for 22%
Key terms
Investor by geography Investor by type
Issuer Dexia Crédit Local
Aa3 / AA / AA-
Issue rating
(Moody’s / S&P / Fitch)
Senior, unsecured,
Instrument unsubordinated, guaranteed
Amount EUR 2,000,000,000
Launch 21 May 2019
Settlement 29 May 2019
Maturity 29 May 2024
Coupon 0%
R/O spread MS + 5bps
33Appendices
Results HY 2019 – Dexia SA Recurring elements : -151 m€
− Net banking income suffering from increased transformation cost and a net
margin affected by persisting historically low interest rates
− -59 m€ of regulatory taxes and contributions
Net result − Positive cost of risk at +23 m€
-546 m€ Accounting volatility : -112 m€
Group share
− Reflecting unfavorable market conditions on OIS and BOR rates, swaps LT
EUR/GBP
Non recurring elements : -283 m€
− Active balance sheet management (-155 m€)
− Net impact resulting from the sale of DKD (-115 m€)
Balance sheet down 15% on the end of 2018
Impact of the sale of Dexia Kommunalbank Deutschland (EUR -24
134.6 bn€ bn)
Balance
sheet -24.2 bn€ Continuation and acceleration of the proactive asset portfolio
vs. 31/12/2018
reduction
Balance sheet total sensitive to interest rate evolution
Total
capital ratio Impact of the negative net annual result
Solvency 25.3% Additional prudential deductions
vs. 27.3% Observance of the Total Capital SREP (>13.85%)
on 31/12/2018
34Appendices
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
58.9% participation in Dexia Israël Closed 18/03/2018 Sale price EUR 82 million
DKD (Kofiba) Closed 30/04/2019 Sale price EUR 352 million
Balance sheet reduction of EUR ~24 billion
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
35You can also read
