Dexia Municipal Agency, the arm of Dexia responsible for providing public sector loans and funding the group, has entered an interest rate swap on a recent two-year EUR1 billion (USD1.16 billion) bond. Olivier Eudes, manager in long-term funding, said it entered the swap because it is company policy to convert all of its fixed-rate liabilities into floating-rate.
The maturity of the swap matches that of the bond, noted Eudes. In the swap, Dexia pays floating and receives the 2.5% fixed-rate coupon on the bond.
