Brussels, Dublin, Düsseldorf, London, Paris, 5 February 2024 - 8:00 AM (CET)
DEXIA AND MOUNT STREET SIGN AN AGREEMENT FOR THE MANAGEMENT OF DEXIA'S BOND PORTFOLIO
Dexia and Mount Street announce that they have signed an agreement enabling Mount Street to take over the servicing of Dexia's €17 billion bond portfolio and a team of eight bond management experts, acting as Dexia's exclusive outsourced service provider for portfolio management services.
Under the terms of the five-year contract, Mount Street, through its regulated business, Mount Street Portfolio Advisers GmbH ("MSPA"), will undertake a range of services including asset management, trade execution, portfolio market data and valuation, and strategic advisory. The €17 billion Dexia portfolio comprises of a range of bonds, financial instruments and credit products from issuers in the public finance, local municipality, utility, social housing and related sectors, across various jurisdictions in Europe and North America.
The new mandate builds on Mount Street's established outsourcing track record and role as portfolio manager-of-choice for blue chip institutions. In 2017, it completed the successful acquisition of EAA Portfolio Advisors, from Erste Abwicklungsanstalt, which included the management of €22 billion of funds. In February 2022, Mount Street was appointed by Aviva Investors to provide debt servicing functions on a portfolio of £30 billion. In 2023, in its role as independent portfolio manager for Helaba's HLB Private Markets Platform, it supported the fund-raising strategy for Helaba's "Infrastructure Debt Fund I".
The transaction between Dexia and Mount Street enables Dexia to pursue the management of its loan and bond portfolio in run-off with a solid partner and in an orderly manner for the ensuing years. Anchored with Mount Street, Dexia will be able to rely on the strong expertise of its Dublin-based bond portfolio managers while giving them new career perspectives within the Mount Street Group.
Pierre Crevits, CEO at Dexia, commented: "I am delighted with this agreement with Mount Street, a very experienced and recognised player in the field of portfolio management. This partnership reflects Dexia's desire, within the context of its orderly resolution, to ensure a future for its bond portfolio management experts within the Mount Street Group while at the same time securing the continuity and quality of its portfolio management services."
Stephan Plagemann, Chief Financial Officer at Mount Street, commented: "Having established a strong relationship with Dexia over the past six years, this appointment is a significant milestone in our legacy portfolio outsourcing capabilities. There remains a need for institutions in resolution to review their structural set-up from time to time as the underlying portfolios are scaled down, while still having to satisfy the requirements of their various stakeholders. We are very excited to have the opportunity to partner with Dexia and provide innovative solutions throughout this process."
ABOUT MOUNT STREET GROUP
Mount Street is a leading global third-party loan servicing and credit asset management firm with approximately €150 billion of assets under management. Mount Street is recognised as a leading real estate loan servicer and among the fastest-growing companies in Europe. Leveraging its proprietary technology and a global presence across 10 offices in key financial centers worldwide, Mount Street has built an international team of seasoned banking, real estate, infrastructure, shipping, and technology professionals to assist institutional investors in capturing value across the lifecycle of their credit and other investments.
To learn more about Mount Street Group, visit mountstreet.com
ABOUT DEXIA
Dexia is a former banking institution and a 99.6% State-owned Belgian-French group, which entered in orderly resolution in December 2012. The Group's mission is to manage its residual assets in run-off while ensuring that the interests of its shareholders and guarantors are preserved. The Group's parent company, Dexia Holding, is a public limited company under Belgian law. Based in France, Dexia is the Group's main operating entity. As at 30 June 2023, Dexia Holding had 515 staff members and total assets of about EUR 60 billion.
To learn more about Dexia, visit www.dexia.com
CONTACT DETAILS
Dexia
Press and Investor Contacts - Brussels: +32 2 213 57 39 - Paris: +33 1 58 58 58 49
Mount Street
Viviane Adjado
Email: viviane.adjado@mountstreet.com - Tel: +44 20 7659 7005
FTI Consulting (PR Advisers)
Email: mountstreet@fticonsulting.com - Tel: +44 3727 1000
