Annual report 2005 - Dexia.com

DexiaPublic/Project Finance and Credit EnhancementSpainNeworiginations(in millions of EUR)l llllllllllllllllllllllllllllll ll l20041,372l llllllllllllllllllllllllllllll ll l20051,749Long-termcommitments(in millions of EUR)l llllllllllllllllllllllllllllll ll l20044,945l llllllllllllllllllllllllllllll ll l20056,452SpainAt year-end 2005, the long-term outstandingcommitments of Dexia Sabadell Banco Localwere EUR 6.5 billion, up 31% on year-end2004. Total long-term originations wereEUR 1.7 billion, up more than 27%.With local authorities, new originationsreached EUR 1.4 billion, up 26% on 2004.This high level results in particular fromwell sustained activity with major clients(autonomous communities, large cities).Note should be taken of the participation ina syndicated loan (EUR 400 million) in anamount of EUR 138 million granted to theautonomous community of Catalonia and aloan of EUR 150 million granted to the city ofMadrid.Dexia Sabadell Banco Local is also particularlyactive in the bond issue segment. Significanttransactions during the year were themandates of joint lead manager for 30-yearissues by the autonomous communities ofCatalonia and the Canaries, an additionalparticipation of EUR 160 million in the issueby the autonomous community of Cataloniaand finally the participation as lead investorin the origination of securities issued by anasset-backing fund, the assets of which aredebts from Spanish local authorities. Thisissue amounted to EUR 665 million, of whichEUR 50 million was subscribed by DexiaSabadell Banco Local and EUR 250 million byother entities in the Dexia Group.In the field of structured financing,originations rose 38% to EUR 310 millionagainst EUR 225 million in 2004. Theextremely dynamic activity of Dexia SabadellBanco Local is concentrated on financingprojects in the sectors of water and theenvironment, wind energy, health (hospitals)and road infrastructures. The assembly of anumber of these financing packages was inthe form of Public Private Partnership (PPP)financing, a market where Dexia plays the roleof leader.Madrid Calle 30, an urban transport project,was the most remarkable operation in 2005.Structured in the form of PPP financing,Dexia played the role of arranger for thefinancing of EUR 2.5 billion (the final Dexiashare amounting to EUR 795 million),intended for the renovation and extensionof the Madrid inner ring road. In view of theoriginality of this operation, associating publicand privates operators, the British magazinesInfrastructure Journal and Euromoney eachnamed it “Deal of the Year 2005”.In the field of water and the environment,the Spanish subsidiary was also co-arrangerof a financing of EUR 884 million, intendedfor the Aigües del Segarra-Garrigues project.Situated in Catalonia, this concerned theconstruction of a new network for theirrigation of agricultural land. This othermajor project also drew the attention of thefinancial magazine Euromoney which namedit “Deal of the Year 2005”.64