Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Dexia will not pay coupon on Tier 2 notes

Source: Reuters - Mon 9th Nov 2009

Belgian-French financial services group Dexia said on Monday it would not pay an optional coupon on its Dexia Bank Belgium notes while it awaits a European Commission ruling on state aid.

Dexia also said it waived the call option related to these upper Tier 2 perpetual notes, which would therefore not be redeemed on Nov. 18, 2009.

On Oct. 30, the European Commission, the EU's executive arm,authorised an extension of the guarantee granted to Dexia by the French, Belgian and Luxembourg States until the end of February 2010, or until a final decision on the group's restructuring plan.

This authorisation was subject to prior commitments, such as not paying out any discretionary coupons, and not exercising any call options on any Upper Tier 2 perpetual instruments issued by any entity of the group, Dexia said.

Dexia, one of the world's largest municipal lenders,received a 6.4 billion euro ($9.6 billion) bailout by France,Belgium, Luxembourg and key shareholders in September 2008 and later won state guarantees for its new borrowing.

Comment on this Story

Be the first to comment on this Story !!

Recommended Items