Bertrand Sauzey (B.S): These transactions, with maturities of 12 and 15 years, were designed to satisfy Dexia’s objectives of obtaining long-term capital. On October 9, 2008, Dexia received government guarantees from France, Belgium and Luxembourg, notably for its new bond issues, but with maximum maturities of only three years. Dexia raised around EUR 27 billion (as at June 5th, 2009), of which 34% non guaranteed and  66% government guaranteed. Last March, in fact, Calyon co-managed the second-largest public bond offering, a EUR 3.5 million transaction with a two-year maturity.
Dexia sought to take advantage of an opportunity to extend the maturity of its financing, especially through the covered bond market, where the bank had not made a public offering since 2008.

 

Bernard du Boislouveau (B.B): The keys to the success of this issue were the quality of Dexia Municipal Agency as an issuer and its reputation among investors. The rating agencies rated it Aaa/AAA/AAA.

Moreover, the re-opening of the covered bond market received a boost from the overall improvement in the market and the announcement by the European Central Bank (ECB) that it would purchase covered bonds from the euro zone.

B.B: The main reason is our covered bond market expertise. Our placement capacity and responsiveness in this volatile market are acknowledged strengths.

 

B.S: Moreover, we established a relationship built on mutual trust with Dexia. We have worked with most of its entities for several years, especially with respect to challenges involving capital markets products.