Annual report 2006 - Dexia.com

9.9. MINORITY INTERESTS – CORE EQUITY
AS OF JAN.1, 2005 434
- Increase of capital 717 Note 1
- Dividends (25)
- Net income for the period 55
- Variation of scope of consolidation (45) Note 2
AS OF DECEMBER 31, 2005 1,136
RAPPORT DE GESTION
CONSOLIDATED
FINANCIAL STATEMENTS
COMPTES SOCIAUX
AS OF JAN.1, 2006 1,136
- Increase of capital 513 Note 3
- Dividends (44)
- Net income for the period 88
- Translation adjustments (1)
- Variation of scope of consolidation (28) Note 4
AS OF DECEMBER 31, 2006 1,664
(1) Dexia Crédit Local issued on November 18, 2005 undated deeply subordinated non-cumulative Notes for EUR 700 million. The prospectus of which may
be obtained on demand. The Notes bear interest on their current principal amount at a fixed rate of 4.300 % for the first 10 years, then, if not called, bear
interest at a floating rate equal to 3-month Euribor plus a margin of 1.730% per annum payable on a quarterly basis.
The payment of interest on the Notes may, or in certain circumstances shall, be suspended. In some circumstances, the principal amount may also be
reduced according to the loss absorption mechanism. Any interest not paid on the Notes will be lost and will therefore no longer be due and payable by
the issuer.
In application of IAS 32, the notes are recognized in equity as the payments of interest are non cumulative and made at the discretion of the issuer.
As those Notes were issued by Dexia Crédit Local and not directly by Dexia SA, they are accounted for as minority interests in Dexia financial statements.
(2) The change in scope of consolidation in 2005 includes the purchase by FSA of remaining minority interests in FSA International Ltd for EUR 40 million, without
impact in group equity and the change in value of the debt relating to FSA for EUR 5 million, deducted from minority interests. The impact on group equity
of debt revaluation is EUR -7 million.
(3) Dexia Funding Luxembourg issued on November 2, 2006 undated subordinated non-cumulative Notes for EUR 500 million. The prospectus of which may
be obtained on demand. The Notes bear interest on their current principal amount at a fixed rate of 4.892 % for the first 10 years, then, if not called, bear
interest at a floating rate equal to 3-month Euribor plus a margin of 1.78% per annum payable on a quarterly basis. The payment of interest on the Notes
may, or in certain circumstances shall, be suspended. In some circumstances, the principal amount may also be reduced according to the loss absorption
mechanism.
Any interest not paid on the Notes will be lost and will therefore no longer be due and payable by the issuer. As for the issue done by DCL in 2005, those
Notes will be considered as equity, and because they are issued by a subsidiary, will be recorded in minority interests in Dexia financial statements.
(4) The change in scope of consolidation in 2006 mainly include the decrease of minority interests in DenizBank and in RBC–DFS Spain.
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Dexia / Annual Report 2006