Subordinated debt

Dexia holds two Hybrid Tier 1 debt instruments issued by Dexia Crédit Local and Dexia Funding Luxembourg

Following the commitments taken by Dexia toward the European Commission, Dexia is not allowed to repurchase any hybrid capital debt

ISIN

Issuer

Booked amount
(in millions of EUR)

Coupon

Call date

Coupon applicable after the  call

FR0010251421

Dexia Crédit Local

56.25

4.30 %

18 November 2015

Euribor 3 months +

173 basis points

XS0273230572

Dexia SA

39.79

4.892 %

2 November 2016

Euribor 3 months +

178 basis points

Restrictions concerning the payment of coupons and the exercise of calls

Dexia’s revised orderly resolution plan includes certain restrictions concerning the payment of coupons and the exercise of calls on subordinated debt and hybrid capital from the Group’s issuers. In this way, Dexia is only required to pay coupons on hybrid capital and subordinated debt instruments if there is a contractual obligation to do so. Dexia cannot exercise any discretionary options for the early redemption of these securities.

In addition, as announced by Dexia on 24 January 2014, the European Commission refused to authorise the Group’s proposal to repurchase the hybrid capital debt issued by Dexia Funding Luxembourg (XS0273230572), noting that the subordinated creditors must share in the financial burden resulting from the restructuring of financial institutions that have been granted State aid. The European Commission has also informed Dexia that it is authorised to communicate this information to the holders of this instrument and to the holders of financial instruments with identical characteristics. Financial instrument FR0010251421 issued by Dexia Crédit Local has similar characteristics.

The European Commission requested that Dexia communicates that this decision relates to its own situation and does not mean that similar decisions will be taken in respect of such financial instruments issued by other European banks subject to orderly resolution plans under the supervision of the Commission.