Dexia Holding SA · EURONEXT:DEXB
Dexia Holding SA — Dexia Crédit Local — Debt Investor Presentation (September 2021)
29 slides from Dexia Holding SA's debt investor presentation, September 2021
Slide 1: Dexia Crédit Local Fixed Income Investor Presentation
Dexia Crédit Local Issuer with an Explicit State Funding Guarantee Fixed Income Investor Presentation September 2021
Slide 2: Disclaimer
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
Slide 3: Agenda
Fixed Income Investor Presentation Agenda Section 1 Group Profile & State Funding Guarantee Section 2 Update on the resolution Section 3 Funding & Liquidity 3
Slide 4: Dexia Group Profile & State Funding Guarantee
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 3. Pursuing the resolution beyond 2021 4
Slide 5: Dexia Group Profile: Overview of a Group in Orderly Resolution
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 Supervision with
Slide 6: Dexia Group Profile: Orderly Resolution Plan
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 dispo
Slide 7: … with an explicit State Funding Guarantee
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
Slide 8: Pursuing the resolution beyond 2021
Dexia Group Profile Pursuing the resolution beyond 2021 Approved by the European Commission on 27 September 2019 Extension of the funding guarantee for a period of 10 years as from 1 January 2022 Extension of Dexia’s senior Guarantee ceiling: EUR 75bn, instead of EUR 85bn debt State guarantee
Slide 9: Update on the resolution
Fixed Income Investor Presentation Update on the resolution 1. Recent Developments 2. Balance Sheet 3. Solvency 4. Portfolio Breakdown and Asset Quality 9
Slide 10: Recent developments
Recent developments Progress in the simplification of the Dexia network Transformation of the Dexia Crédit Local branch in New York Transfer of the entirety of the residual balance sheet to Dexia Crédit Local in Paris in April 2020 Transformation of the entity into a representative office and
Slide 11: Recent developments: balance sheet management
Recent developments Proactive management of the balance sheet and off-balance sheet Asset portfolio down by EUR 3.1 billion over the first halfyear 2021 EUR -2 billion of assets sold or redeemed early, of which • EUR -0.8 billion of project & corporate finance Ongoing asset disposal • EUR -1.1 b
Slide 12: Balance Sheet: Indicative Run Off Balance Sheet
Dexia Group Balance Sheet Indicative1 Run Off Balance Sheet For illustration purpose only (in EUR billion) Achieved Forecasts1 Sensitivity to exogenous factors, as the amount of cash collateral posted and fair value items may be impacted by interest rate and exchange rate movements. The decrease o
Slide 13: Solvency: Total capital ratio
Dexia Crédit Local, Issuer of the Dexia Group Solvency Total capital ratio For illustration purpose only Achieved Forecasts1 Capital measures undertaken since 2016 aiming at enhancing capital ratios Positive impact of IFRS 9 first time application of EUR ~2.7bn on regulatory capital in 2018 (~50
Slide 14: Portfolio Breakdown and Asset Quality
Dexia Crédit Local, Issuer of the Dexia Group Portfolio Breakdown and Asset Quality Portfolio1 distribution & maturity breakdown Portfolio reflecting Dexia’s previous positioning as a former leader in public financing Good asset quality overall: >90% assets within the investment grade range Lo
Slide 15: Funding & Liquidity
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 15
Slide 16: Targeted Funding Profile
Funding & Liquidity Targeted Funding Profile Indicative1 Consolidated Funding Mix Funding Mix For illustration purpose only Achieved Forecasts1 ■ State Guaranteed funding raised under the State guarantee scheme ■ Secured market funding (non Balanced mix between long and short-term funding allows f
Slide 17: Funding Tool Box
Funding & Liquidity Funding Tool Box State guaranteed funding Non guaranteed Debt capital Money market Repo market markets Maturity Up to 1 year 1 to 10 years Up to 1 year Bilateral and Triparty Format Commercial Papers Bonds Repo Currencies EUR, USD, GBP, CHF, CAD, JPY Mainly EUR Issuer Dexia Crédi
Slide 18: State Guarantee Issuance
Funding & Liquidity State Guarantee Issuance Key pillar of the funding mix Current State Guaranteed funding mix As the robustness of the explicit State Guarantee has positioned DCL as an SSA issuer, this source of funding progressively became the key pillar of the Group refinancing Regular bond
Slide 19: State Guarantee Issuance - Capital Markets Funding
Funding & Liquidity State Guarantee Issuance - Capital Markets Funding Highlights Redemption profile of outstanding issuances For 2021, long term funding program of EUR 4.9bn Firm anchorage in SSA landscape due to: - Explicit State Guarantee funding - HQLA Level 1 status Execution strategy: -
Slide 20: State Guarantee Issuance - Commercial Paper programs
Funding & Liquidity State Guarantee Issuance - Commercial Paper programs Highlights Outstanding by currency and initial duration Objective: managing short-term liquidity For 2021, average outstanding targeted at EUR 13bn Frequent issuer in EUR, USD and GBP Investor base : Central Banks, Offi
Slide 21: Contact Information
Fixed Income Investor Presentation Contact Information 21
Slide 22: Contact Information
Fixed Income Investor Presentation Contact Information Funding & Treasury Communication & Investor Relations Jean-Christophe Ricard Fabienne Carlier Head of Funding & Treasury Head of Communication & Investor Relations Tel: +33 1 58 58 51 42 Tel: +32 2 213 57 39 jean-christophe.ricard@dexia.com fabi
Slide 23: Appendices
Dexia Crédit Local Issuer with an Explicit State Guarantee Fixed Income Investor Presentation Appendices
Slide 24: 2013 Funding State Guarantee Mechanism
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
Slide 25: Ratings
Appendices Ratings1 State Guaranteed Debt Long term Outlook Short term “The group reduced its size, international Dexia Crédit Local footprint, operating complexity, and risks, and improved its solvency ratios. Accelerated asset Fitch AA- F1+ sales have helped strengthen its capital beyond our expec
Slide 26: 2021 Government Guaranteed Public Benchmarks
Appendices 2021 - Government Guaranteed Public Benchmarks Government Guaranteed Benchmarks in EUR Government Guaranteed benchmarks in USD Government Guaranteed benchmarks in GBP 26
Slide 27: State Guaranteed Bonds Secondary Market Levels
Funding & Liquidity State Guaranteed Bonds Secondary Market Levels EUR USD Spread vs MS (bps) Spread vs MS (bps) 30,00 70,00 25,00 60,00 50,00 20,00 40,00 15,00 30,00 10,00 20,00 5,00 10,00 - - 01-03-20 01-04-20 01-05-20 01-06-20 01-07-20 01-08-20 01-09-20 01-10-20 01-11-20 01-12-20 01-01-21 01-02-2
Slide 28: H1 2021 Results – Dexia
Appendices H1 2021 Results – Dexia Recurring elements : EUR -115m − Net banking income (EUR +6m) in particular reflecting the impact of the decrease of cash collateral during the halfyear − Cost of risk at EUR +47 million, of which EUR +24 million resulting from update of macro-economic scenarios
Slide 29: Disposal Process
Appendices 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 millio
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