Dexia passes on tier one coupon after EC rap

11 Oct 2009

Dexia announced late on Friday that it would not service the discretionary coupon on its Eu500m perpetual non-call 2016 tier one issue, following the European Commission’s stark reminder last week that banks receiving state aid should not use government money to reward investors.

While the EC statement was not directly aimed at Dexia and ING, it was clear from its wording that the EC was not pleased with their decisions to call some of their subordinated issues.

ING last week and Dexia the previous week had said they intended to call their ...

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