Dexia : Dexia : Finalisation of the sale of Société de Financement Local

   Dexia : Dexia : Finalisation of the sale of Société de Financement Local

Regulated information * - Brussels, Paris, 31 January 2013 - 17.45

Finalisation of the sale of Société de Financement Local

Today Dexia announces finalisation of the sale of Société de Financement Local
(SFIL), holding  company owner  of Dexia  Municipal Agency,  the latter  being 
renamed Caisse  Française  de Financement  Local.  Purchasers are  the  French 
State, with a majority holding, alongside the Caisse des Dépôts and La  Banque 
Postale. The sale and purchase  of Dexia Municipal Agency  is one aspect of  a 
project on the part of its new shareholders to create a pole for the financing
of the local public sector in France. For Dexia it represents the disposal  of 
its last major commercial franchise and  is therefore a decisive phase in  its 
orderly resolution  plan.  All  of the  regulatory  authorisations  have  been 
received, including that from the European Commission.

The transaction price was set at 1 euro. As announced in the Interim Statement
for 9M  and  Q3  2012^[1], sensitive  loans  on  the balance  sheet  of  Dexia 
Municipal Agency are  within the  scope of this  disposal and  Dexia will  not 
provide any guarantee on those assets.

The total impact of  the sale of  SFIL amounts to  EUR -1.8 billion.  Applying 
accounting  standards,  this  impact  was  partly  booked  in  2011,  on   the 
reclassification of Dexia Municipal Agency under  IFRS 5, in an amount of  EUR 
-1.1 billion. In the H1  2012, a fair value adjustment  was booked of EUR  -53 
million, corresponding to the variation  in Other Comprehensive Income  (OCI). 
Similarly, the accounts for H2 2012, to be published on 21 February 2013, will
integrate an adjustment of EUR -585  million corresponding to the revision  of 
sale conditions and OCI  variations. The residual impact,  to be booked in  H1 
2013, is estimated at EUR -142 million.

On the closing date,  SFIL represents a  balance sheet of  EUR 95 billion  and 
around EUR 4 billion in weighted  risks. The proceeds of the reimbursement  of 
funding lines granted by Dexia Crédit  Local to Dexia Municipal Agency,  which 
amount to EUR 11.2 billion, will serve to reduce the debt of the Dexia  Group, 
particularly vis-à-vis Belfius.  Details of  the impacts  of the  sale on  the 
balance sheet, the weighted risks and the liquidity of the Dexia Group will be
communicated with the results for H1 2013.

On the database as at  30 June 2012, the isolated  impact^[2] of this sale  on 
Dexia's Tier 1 and Core Tier 1 ratios is 40 bp, and 50 bp on the CAD ratio.

Karel De Boeck, Chief Executive Office of the Dexia Group, stated that,  "With 
the sale  of  Société de  Financement  Local, the  Dexia  Group is  passing  a 
significant milestone on the way  to implementing its orderly resolution  plan 
and to seeing an improvement  in its risk profile.  Supported by a new  public 
majority shareholder,  this  entity can  continue  to  play a  major  role  in 
providing local public sector finance in France."

* Dexia  is a  limited company  listed on  a regulated  market  (NYSE-Euronext 
Brussels and NYSE-Euronext Paris). This press release contains information the
dissemination of which is governed by the Royal Decree dated 14 November  2007 
relating to the obligations  of issuers of financial  instruments listed on  a 
regulated market.

For more information: www.dexia.com

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[1] Cf. Press Release dated 8 November 2012

[2] This impact does not take account of the EUR 5.5 billion capital increase
which took place in December 2012

Press release

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Source: Dexia via Thomson Reuters ONE
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