Funding strategy

Dexia’s orderly resolution plan, approved by the European commission in December 2012, calls for a controlled run-off of Dexia’s balance sheet, by carrying the remaining assets until maturity without any new commercial production. In 2012, contrary to other European schemes, Dexia’s shareholding structure as well as the size and the nature of its balance sheet and off-balance sheet, required a legacy structure resolution process with a banking licence.
Within that framework and as, on average, the Group’s assets have a long maturity profile, the Belgian, French and Luxembourg States provided Dexia Crédit Local, a French banking entity and the Dexia Group main operational entity, with a EUR 85 billion funding guarantee which became effective in January 2013. This specific government guarantee was designed to allow management of the Group’s balance-sheet wind-down over the long run.
Since inception of the 2013 State Guarantee funding programmes, Dexia Crédit Local has established itself both as a benchmark issuer, with an annual long-term issuance programme of around EUR 13 billion, and as an important money market player in euros and US dollars. In addition, to optimise its funding mix and to diversify its liquidity sources away from Eurosystem funding, Dexia Crédit Local also developed access to short and long-term secured funding transactions.
Dexia Crédit Local benefits from a well-diversified and granular investor base reflecting the extensive marketing initiatives implemented since 2013.