Dexia sells Luxembourg bank to Qatari fund

Dexia is selling its Banque Internationale à Luxembourg business to Qatari investment group Precision Capital and the Grand Duchy of Luxembourg.

Precision Capital is acquiring a 90% stake in the business, and the Duchy a 10% stake. The €730m deal follows a memorandum of understanding signed in December 2011.

The deal does not affect other Dexia services within Luxembourg, such as Dexia Asset Management Luxembourg, RBC Dexia Investor Services Limited, Dexia LDG Banque or the portfolio of legacy securities of Banque Internationale à Luxembourg.

“These assets will be either transferred to Dexia or disposed of separately prior to
closing. Banque Internationale à Luxembourg will have a strong capital position at closing corresponding to a 9% Common Equity Tier 1 ratio under Basel III,” the bank said.

The parties involved expect the deal to close by the third quarter of 2012, subject to regulatory approval.

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