Annual report 2005 - Dexia.com

Annual Report 2005The NetherlandsIt is through its subsidiary Banque ArtesiaNederland that Dexia operates on the localpublic sector market in the Netherlands. Atyear-end 2005, global long-term outstandingcommitments were EUR 819 million andoriginations EUR 423 million, up 66% on2004. Dexia activity in the Netherlands isconcentrated essentially on the financing ofsocial housing.America• Dexia Crédit Local New York BranchThe branch operates in two fields: on theone hand, the public sector where it offersliquidity guarantees on municipal bond issuesand the purchase of bonds, and on the otherhand structured financing.Dexia recorded a very good year 2005 in NorthAmerica. Global outstanding commitments tothe branch reached a peak of USD 50 billion,up 37.4% on 2004. Total originations in theNorth American public sector rose 54% toUSD 12.7 billion whilst that from structuredfinancing reached USD 646 million againstUSD 144 million in 2004.The public sectorIn 2005, the American municipal bondmarket hit a new record in terms of newissues, with a total volume of USD 407 billion,passing the previous record achieved in 2003(USD 383 billion). By virtue of the verygood market context, the off-balance-sheetoriginations of the branch amounted toUSD 7.4 billion in 2005, up 18.5% on 2004.Moreover, the total bond purchase volumewas USD 5.7 billion over the year 2005.As regards the investments of the branchin tax-exempt bonds, the “Tender OptionBonds” program, launched in mid-2004,developed rapidly. In 2005, the amount oftax-exempt bonds purchased by Dexia wasUSD 1,541 million against USD 572 millionin 2004. In addition, the volume of taxablebonds purchased was USD 1,347 million.The subsidiary also operated on theCanadian bond market in a total amount ofCAD 485 million.Structured financingIn 2005, we note a strong recovery ofstructured financing activity in the Americas.This was oriented towards the energy sector,and more particularly that of renewable(wind) energy, which continued to developwith success. In this field, Dexia is todayrecognized as a leading operator on theAmerican market.Dexia also arranged the largest financing bybank debt ever put together in the UnitedStates in the renewable energy sector. It alsoenabled Dexia to strengthen its position asworld leader in the financing of wind energyprojects (Invenergy Wind project). Finally, inview of its innovative character, the magazineEuromoney gave it the “Deal of the Year 2005”prize.AmericaDexia Crédit LocalNew York Branch (1)Neworiginations(in millions of USD)l llllllllllllllllllllllllllllll ll l2004l llllllllllllllllllllllllllllll ll l20048,43536,465l llllllllllllllllllllllllllllll ll l2005l llllllllllllllllllllllllllllll ll l200513,476(1) In 2005, Dexia Bank BelgiumNew York Branch merged withDexia Crédit Local New YorkBranch.Long-termcommitments(in millions of USD)50,09061