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FACTBOX-Dexia's assets, business units
PARIS Oct 9 (Reuters) - France, Belgium and Luxembourg on Sunday agreed to a rescue plan for Dexia ahead of a planned board meeting expected to decide on a breakup of the first lender to fall victim to the euro zone crisis.
The following are the main assets and business units likely to be divided up as a result:
* Dexia's large bond portfolio and toxic assets are likely to be shifted to a "bad bank" guaranteed by French and Belgian governments:
The bond portfolio grew to 95.3 billion euros ($129 billion) at the end of June 2011, including:
- 24.5 billion in local public sector bonds
- 15.8 billion in sovereign debt
- 15.6 billion in bank bonds
- 12 billion of covered bonds
- 7.1 billion of asset-backed securities
- 7.4 billion of mortgage-backed securities
* Dexia Municipal Agency (DexMa): bond issuance vehicle at the heart of Dexia Credit Local, the French unit of Dexia.
- Portfolio consists of some 80 billion euros and essentially comprises loans to local governments, mostly but not exclusively French. Experts say about 10 billion euros of these loans may never be repaid and are being disputed by French towns in lawsuits.
- A new holding company jointly owned by French government banks Caisse des Depots and Banque Postale is expected to take over this unit, although the exact amounts each will control has yet to be determined.
* Dexia Bank Belgium
- Belgium is expected to nationalise the largely retail Belgian banking unit of Dexia, although a report in Belgian daily L'Echo mentioned Santander , BBVA , HSBC , Deutsche Bank , RabobankSociété Générale as possible buyers.
* Dexia Banque Internationale in Luxembourg (BIL)
- Luxembourg's government said on Thursday it was in talks with a potential investor in Dexia's unit there. Luxembourg Finance Minister Luc Frieden has said the talks were at an advanced stage and could be finalised before the end of October.
- Media have reported it is set to be sold to Qatar for 900 million euros.
* Other units
- Denizbank : Dexia's Turkish unit, could be the object of a bid by Russia's Sberbank , according to French daily Les Echos.
- Crediop, Sabadell: the Italian and Spanish public finance units of Dexia, which specialize in municipal finance, may end up as part of the "bad bank."
- RBC Dexia Investor Services: the funds custody joint venture with Royal Bank of Canada , which had $2.8 trillion in client assets under management at the end of last year, could also be a candidate for sale.
- Dexia's asset management unit had 86.4 billion euros under administration as of the end of 2010 and is also likely to go on the block.
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