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On 18 March 2018, Dexia announced the sale of its 58.9% stake in Dexia Israel Bank. According to Dexia, the sale completes the mandatory divestment process of the Group's commercial franchises, as part of the recovery plan undertaken by the Group following a financial crisis in 2011.[1]

The sale was carried out in an off-market transaction with investment institutions. Following the sale, Dexia Israel Bank has no controlling core. According to a recent company disclosure, as at 31 March 2018, significant shareholders are Noked Capital (4.87%), Phoenix Holdings (4.36%), Yelin Lapidot Holdings (4.03%) Analyst E. M. S. - Mutual Fund Management (3.9%) and Norisha Holdings Limited (3.36%). [2]

Dexia Group's Past Involvement in the Occupation:

In 2001, Dexia bought the Israeli Municipality Treasure Bank and established Dexia Israel. Dexia Israel (TASE: DXIL) has been giving long-term loans and other financial services to municipalities of Israeli settlements in the occupied Palestinian territory.

Since 2005, Dexia has been giving long-term loans and other financial services to more than ten different Israeli municipalities in the occupied West Bank, including: Ariel, Elkana, Alfei Menashe, Har Hebron (South Hebron Hills), Kdumim and Giv'at Zeev.

Following public campaigns led by the Belgian Intal group, the bank announced in June 2009 that financing Israeli settlements is contrary to the bank's code of ethics, and that since September of 2008 it has not provided new loans to settlements in the occupied West Bank. However, contrary to this announcement, it has continued providing loans to local and regional councils of settlements after September 2008.

In September 2014, Dexia Israel Bank provided a loan turnover of NIS 1.25 million to Shomron Regional Council for sewage lines along Nahal Qana (Qana stream) in the occupied Palestinian territory.

In 2012, Dexia Israel provided a guarantee for a project of the Israeli Ministry of Defense to purchase and install lighting around Kedumim settlement.

In 2009, Dexia Israel issued a 6.8 million NIS loan for waste management systems in the settlement of Bat Ayin. The loan is given from state funds through the administration for sewage infrastructures.

All Mifal HaPais (Israeli national lottery) grants given to settlements for construction of buildings and facilities are transferred through Dexia Israel. In 2014-2017, Dexia Israel bank provided bank account management services for the Israeli lottery projects of Shomron Regional Council, Mateh Binyamin Regional Council, Gush Eztion Regional Council, Megilot Dead Sea Regional Council, Efrat Local Council, Alfei Menashe Local Council and Kedumim Local Council.

As at 7 May 2017, Mifal HaPais provides active grants to the following settlements and settlement regional councils in the occupied Palestinian territory and the occupied Syrian Golan: Alfei Menashe, Elkana, Ariel, Beit Aryeh, Beitar Illit, Jordan Valley Regional Council, Givat Zeev, Golan, Gush Etzion, Modiin Illit, Mateh Binyamin, Maale Adumim, Maale Efraim, Megilot Dead Sea Regional Council, Immanuel, Kdumim, Katzrin, Kiryat Arba, Karnei Shomron and Shomron. Grants were also provided to the Jerusalem municipality for numerous projects in settlement neighborhoods in occupied East Jerusalem, including Pisgat Zeev, Neve Yaakov, Gilo and Har Homa.

For a full report on the Israeli banks click here.

[1] "Dexia sells its 58.9% participation in Dexia Israel Bank" Dexia Group, dexia.com, 18 March 2018

[2] "List of significant shareholders in accordance with securities regulations as at 31.3.18" (Hebrew), The Tel Aviv Stock Exchange Corporate Actions Systems (MAYA), maya.tase.co.il, 10 April 2018