Dexia Bank (Paris:DX; Brussels:DEXB) is expanding its activity in Israel. The Franco-Belgian bank owns Bank Otzar Hashilton Hamekomi Ltd.
Dexia plans to provide financing to the public sector, including infrastructure projects, and will rename Bank Otzar Hashilton Hamekomi, run by general director and CEO David Kapah, to Dexia Public Financing.
Dexia CEO Axel Miller is visiting Israel. He said, “The expansion of activity in Israel is part of Dexia’s global strategy, and dynamism of the Israeli project financing sector.”
Miller met Vice Premier and Minister of Galilee and Negev Development Shimon Peres to discuss financing in Israel, including in the joint Israeli-Jordanian-Palestinian Peace Valley project. This project includes the Red-Dead Sea canal proposal.
Dexia will finance public and private projects providing public services, such as transport, desalination, energy and infrastructures. The bank also plans to greatly expand credit it lends to local authorities, and will begin to provide foreign currency services, including the setting up a dealing room, once it obtains a permit from the Bank of Israel.
Dexia Public Financing posted a net profit of NIS 40.2 million in 2006, up 15.5% on 2005, and its return on equity rose to 11.2% from 10.6%. The bank’s share of the municipal financing market was 25.4%, compared with 37.2% for Bank Hapoalim (LSE: BKHD; TASE: POLI) and 30.5% for Bank Leumi (TASE: LUMI).
Dexia has a market cap of €21.5 billion, triple the size of all of Israel’s banks put together.
Published by Globes [online], Israel business news - www.globes.co.il - on March 22, 2007
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