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THE BANK FOR CORPORATES
34
Local governments
Two new equity
investments
Financing in the local government segment
Austria Abroad Total
in EUR m 2001 2000 Change 2001 2000 Change 2001 2000 Change
Loans1) Securities
3,196 2,140 +49 % 716 416 +72 % 3,912 2,557 +53 %
financing2) 123 48 +158 % 103 104 -1 % 225 151 +49 %
Total financing 3,319 2,188 +52 % 819 520 +57 % 4,137 2,708 +53 %
1) Loans and advances to customers, trust loans and provision for guarantees
2) Bonds and other fixed-income securities of other non-bank issuers
MANAGEMENT OF TRUST FUNDS. More than 3,000 of all the projects carried out by Kommunalkredit
within the scope of its trust funds management in the year 2001 (environmental aid programmes
of the Federal Government, support and development co-operation programmes for Eastern
European countries of the Federal Ministry for Foreign Affairs, “Wirtschaftsimpuls“ programme of
the Federal Province of Upper Austria) were deemed eligible for funding. The cash value of the funding
amounted to approximately EUR 498 m. Furthermore, Kommunalkredit engaged in consulting
services for several international clients. As at 31 December 2001, the Environmental and Water
Management Fund administered by Kommunalkredit reported a balance sheet total of EUR 2.97 bn.
EQUITY INVESTMENTS. In 2000, Dexia Kommunalkredit Holding acquired a 78.4% stake in the
Slovakian Prvá Komunalná Banka (PKB) in Zilina. With 614 employees in a total of 47 branch offices,
PKB holds a share of 70% in the Slovakian market for local government financing. In 2001, the
balance sheet total rose from EUR 460 m to EUR 523 m and the profit for the year remained stable at
EUR 6.5 m. Kommunalkredit expects to contract additional new business from two subsidiaries which
were set up in 2001 and started their operations in 2002: With Kommunalleasing GmbH (a subsidiary
owned jointly with BAWAG PSK Leasing) Kommunalkredit was able to venture into the real-estate
leasing market, and its IT subsidiary TrendMind will offer the SAP bank controlling products, which
were successfully used within Kommunalkredit, also to other customers.
TREASURY. In 2001, Kommunalkredit raised an overall amount of about EUR 1.5 bn on the capital
market for the financing of local government projects. In this context, 16 issues were launched, of
which 14 were documented under the debt issuance programme, whose volume was increased to
EUR 5 m in 2001. For the year 2002, Kommunalkredit plans to achieve a refinancing volume of EUR 1.8 bn.