Annual report 2005 - Dexia.com

Annual Report 2005United KingdomAt year-end 2005, total long-termoutstanding commitments to the branch wereEUR 6.8 billion, up 47% on 2004. In 2005,long-term originations by Dexia in the UnitedKingdom progressed strongly. They wereEUR 2.2 billion, up 32% on 2004. This riseis associated with very strong activity in thefield of structured financing which more thandoubled to represent some 50% in 2005 oftotal Dexia activity in the United Kingdom.With the local public sector, and despite a slightfall in the order of 6%, originations amountedto EUR 1.1 billion, including EUR 889 millionwith local authorities. The success inmarketing the LOBO (Lender’s Option,Borrower’s Option) product continues. Thistype of package is extremely attractive since itenables clients to be offered more interestingrates than those offered by the PWLB (PublicWork Loan Board). In 2005, two trends wereobserved: on the one hand, an increase ofmaturities (loan terms) which enables thepublic sector to benefit from interestingfinancing conditions over the long term and,on the other hand, the implementation of assetmanagement operations. In fact, British localauthorities want to benefit from good marketconditions to restructure their outstandingdebt.In the field of structured financing,originations over the year 2005 reachedEUR 1.1 billion against EUR 513 millionin 2004. Activity is particularly sustainedin the field of PPP/PFI. A noteworthy factis that over the year 2005, Dexia occupiedsecond place in the sector for arrangementof bank loans. The British branch in factplayed the role of arranger for a dozen PPPprojects in numerous fields, the principal ofwhich was education but also health, publictransportation, public lighting and socialhousing. This long and sound presence ofDexia on the English PFI market contributesa great deal to the development of this activityin the Group, in the rest of Europe and inthe United States. The British branch alsoinvested in bond issues in the fields of theenvironment, energy and health.United KingdomNeworiginations(in millions of EUR)l llllllllllllllllllllllllllllll ll l2004l llllllllllllllllllllllllllllll ll l20041,6844,609l llllllllllllllllllllllllllllll ll l2005l llllllllllllllllllllllllllllll ll l20052,224Long-termcommitments(in millions of EUR)6,75667