PRESS RELEASE
09/07/2003

Results of the Dexia Offer in the Netherlands

  • Rate of response to the offer : 58% of the contracts
  • Acceptance of the offer by 80% of the respondents
  • Effective average acceptance rate: 46%
    (varying between 41% and 54% according to maturity of contracts)

As announced on May 21, 2003, the commercial offer made to the customers of Dexia Bank Nederland holding share leasing contracts of the former Bank Labouchere was extended. The initial six week's time limit for answer has been extended in order to allow a maximum of customers to examine and respond to the offer.

To date, 108,000 responses have been received, out of a total of 196,500 customers eligible to the offer. These responses bear on 212,000 or 58%, of the 368,000 contracts eligible to the offer. The positive responses represent 80% of the total received (or 169,000 contracts), and the negative ones 20% (or 43,000 contracts). The global acceptance rate amounts thus to 45.9% of all the contracts concerned by the offer, or:

  • 41.3% for contracts already matured (51,500)
  • 53.6% for contracts expiring between 2003 and 2006 (69,000)
  • 42.2% for contracts expiring after 2006 (48,500)

As at July 4th 2003, the total amount of loans granted by Dexia Bank Nederland pursuant to share leasing contracts amounted to EUR 3,757 Million, and the value of the shares serving as collateral was EUR 2,128 Million. Two types of contracts, with different levels of risk, are included in this book:

1) contracts with periodic reimbursement of principal, presenting no risk of residual debt at maturity: this category represents respectively 1,382 Million of credit outstanding, and EUR 974 Million of collateral value;

2) contracts with " bullet repayment ", the only ones covered by the commercial offer because they may end up with a residual debt at maturity; as at July 4th 2003 this category represented total credit outstanding of EUR 2,375 Million, and the total lack of collateral for bullet repayment contracts in a negative position was EUR 1,226 Million, broken down as follows:

  • EUR 518 Million for the contracts on which no response has been received to date
  • EUR 562 Million for the contracts on which the offer has been accepted
  • EUR 146 Million for the contracts on which the offer has been refused

The offer being now closed, Dexia Bank Nederland has resumed the management of the outstanding loan portfolio under its usual criteria, including in terms of collection procedures.

Dexia is very pleased with these results, which demonstrate a wide acceptance by the customers of the solution proposed by the bank. Its implementation will allow both to significantly reduce the credit risk borne by the bank, and to give the customers all possible options to settle their obligations and minimize their cost.

Summary results of the Dexia Offer

Number of customers eligible to the offer

Number of contracts eligible to the offer (1)
Outstandings of contracts eligible to the offer(2)
Lack of collateral on contracts eligible to the offer(2) (3)
Total
196,500
368,000
2,356 M¿
1,226 M¿
No response to date
88,500
156,000
995 M¿
518 M¿
As a % of total
45.0%
42.4%
42.,2 %
42.,3%
Responses received
108,000
212,000
1,361 M¿
708 M¿
Positive responses
86,000
169,000
1,087 M¿
562 M¿
En % du total
43.8%
45.9%
46.2%
45.8%
Negative responses
22,000
43,000
274 M¿
146 M¿
As a % of total
11.2%
11.7%
11.6%
11.9%

(1) Including a total of 124,000 contracts already matured but nevertheless included in the offer
(2) For the 244,000 contracts not expired and in a negative position
(3) On the basis of the AEX index as at July 4th, 2003 or 293