PRESS RELEASE
12/07/2005

The republic of Poland has mandated Dexia for the lead-management of the second Euro 50-year issue launched by a sovereign issuer

Dexia Capital Markets and HSBC, in cooperation with Dexia Kommunalkredit Bank, the newly funded bank of the Group in Vienna with the focus on Central and Eastern Europe, have lead-managed with success the second 50-year bond issue in euro launched by a sovereign- after the France's issue in last February. This is the Republic of Poland (A2/BBB+) bond issue with the longest maturity, following the Poland 30-year euro bond issue in January 2005.

Reaching such maturities allows public sector issuers to better match their liabilities with their assets. As such, this allows to optimize the financing structure, especially in the actual condition of historically low long rates.

The issue was launched as a 50-year private placement of EUR 500 million, under the existing EMTN programme, on the international capital markets. The aim is to finance the servicing of the existing foreign debt. The bond maturing on July 20, 2055, was priced at a yield of 4.299%. The bond issue Poland 4.250% 2055 is as well the longest available fixed-rate issue in euro.

This innovative transaction has been realised with the support of Dexia Kommunalkredit Bank which intends to be among the leading players in public finance in Central Europe, within the next five years.