Dexia announces today the successful completion of the issuance of perpetual subordinated notes qualifying as Tier 1 capital for an amount of EUR 500 million. This issuance is part of Dexia's financing plan for the acquisition of DenizBank.
Dexia Funding Luxembourg S.A., a financing vehicle subsidiary of Dexia SA, has issued EUR 500 million Fixed Rate / Floating Rate (see below) Undated Deeply Subordinated Notes with a payment date on November 2nd, 2006 and a first call date on November 2nd, 2016. This issue is guaranteed on a subordinated basis by Dexia SA and the proceeds will be directly on-lent on a Tier 1 basis to the banking subsidiaries of Dexia Group.
The Notes bear interest at a fixed rate of 4.892% per annum until the first call date on November 2nd, 2016 and thereafter at a floating rate equal to 3 months Euribor + 1.78%.
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