Annual report 2005 - Dexia.com

DexiaPublic/Project Finance and Credit EnhancementWithin a low-rate context, activity withmajor clients, departments and regions grewby 17% to EUR 4 billion, which again backsup Dexia’s leading position in this segment.This evolution confirms the significantreturn of those clients to borrowing in acontext, which began in 2004, of a transfer ofcompetence. Dexia promoted two bond issuesfor clients in this segment in 2005, one forEUR 150 million for the regional council ofProvence-Alpes-Côte d’Azur and the other forEUR 120 million for the city of Paris.Clients among other local operators todayrepresent 33% of the long-term financingactivity in the local public sector. With a totalorigination volume of EUR 3.4 billion, Dexiais strengthening its strategy of diversificationin this very dynamic market segment.Origination in the public health sector wasEUR 1,024 million. The projects implementedwere stimulated by the “2007 Hospital Plan”and other actions of national interest such asthe fight against cancer and emergency careservices. With a market share of 41%, Dexiaconfirms its position in France as premierfinancial partner in this sector.The housing sector gained 10% comparedto 2004 with an origination volume ofEUR 1.6 billion. The greatest demand forfinancing comes from clients in UrbanPlanning and Habitat for a total amountof more than EUR 1.4 billion. 80% of thisactivity involved HLM and OPAC (Officepublic d’aménagement et de construction– logement social) companies.These organizations called on Dexia for thefinancing of their new constructions, in orderto facilitate the balancing of their operationalactivities, as well as for the financing ofmaintenance and renewal of their housingstock.With semi-public companies, totalorigination in 2005 made good progress toEUR 240 million, against EUR 163 million in2004.The total amount of long-term financingto the social economy sector also evolvedfavorably, rising by 8.2% to EUR 696 million.Dexia CLF Banque offers a complete range ofasset management products and services tolocal institutional clients. In 2005, assets undermanagement reached EUR 4.7 billion, up 6%on year-end 2004. UCITS assets representEUR 2.3 billion.As regards structured financing, originationin 2005 rose considerably, by 41% toEUR 558 million against EUR 397 millionin 2004. In this field, Dexia concentrates onproject and asset financing. It plays the roleof financial advisor, arranger or lender in thesectors of infrastructure (transport and carparks) and the environment (waste disposal).Note should also be taken of the mandate asfinancial advisor entrusted to Dexia at thebeginning of 2005 by the Group Lyon TurinFerroviaire (an entity created by the French-Italian inter-governmental commission)to study the modes of financing the futuretransalpine high-speed train link.In 2005, the activity of arranging financing forinfrastructure projects in the Public PrivatePartnership (PPP) field developed strongly,especially in the sectors of health, justice,public transport and education. Dexia tookpart in calls for tenders as financial advisorand also as investor and potential arrangerof financing.58