3 Issuing costs of state guaranteed bonds - Financial Risk and ...

A1.2 Ad hoc guarantees
Annex 1 Eligibility criteria for state guarantees
A1.2.1 Guarantee agreement between the Belgian, French and
Luxembourg State and Dexia 36
Implementation date of scheme
9 October 2008
End date of entry into scheme
30 June 2010 (originally set at 31 st October 2009)
Fee for instrument
Depending on the length:
(i) for instruments with a maturity of less than a month, as well as for a maximum amount of
€4 billion for the callable deposits (in particular by fiduciaries): 25 bps
(ii) for instruments with a maturity less than twelve months inclusive, including instruments
with no fixed maturity: 50 bps
(iii) for instruments with maturity strictly longer than one year: 50 bps plus the minmum of:
the median of the Dexia 5-year CDS spread calculated on the period beginning 1 Jan
2007 and ending 31 Aug 2008 (provided that these spreads are representative); the
median of the 5-year CDS spread of all credit institutions with a long-term credit rating
equivalent of that of Dexia, calculated over the same period
From 1 March 2010, an additional remuneration, calculated on a pro rata basis, was due on any
amounts that exceed €60 billion as follows:
(i) 50 bps per annum (on a pro rata basis) on the amount of the Guarantee Agreement
between €60-70 billion
(ii) 65 bps per annum (on a pro rata basis) on the amount of the Guarantee Agreement
between €70-80 billion
(iii) 80 bps per annum (on a pro rata basis) on the amount of the Guarantee Agreement
between €80-100 billion
Maximum tenor
4 years
Institution criteria
The Scheme was only available to Dexia SA, Dexia Banque Internationale a Luxembourg S.A., Dexia
Banque Belgique and Dexia Credit Local S.A.
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For details see:
http://www.dexia.com/docs/2008/2008_news/20081209_gov_02_UK.pdf;
http://www.dexia.com/docs/2010/2010_services/20100416_Avenant17mars_UK.pdf;
http://ec.europa.eu/competition/state_aid/cases/227704/227704_944159_114_1.pdf.
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