CDC IXIS Financial Guaranty this week received a $200 million loan from parent company Caisse Nationale des Caisses dEpargne that will enable the municipal bond insurer to guarantee larger-sized transactions.
CDC IXIS is also known as CIFG.
About $90 million of the loan was immediately withdrawn by CIFG Holding, and deposited as equity capital at CIFG, managing director Steven Klein said in an interview yesterday.
The remaining $110 million is available on an irrevocable and unconditional basis for future draws to support growth, according to a prepared statement.
CIFGs claims-paying resources now total more than $900 million, with over $400 million of that secured since mid-2002, CIFG chief financial officer said James OKeefe in the statement.
Repayments under the debt facility are senior unsecured obligations of CIFG Holding subordinate to the financial guaranty obligations of the operating companies within CIFG.
CIFGs ownership was transferred from Paris-based and state sponsored Caisse des Dépots et Consignations to Caisse Nationale des Caisses dEpargne in July 2004. CDC maintains a 35% stake in CNCE.
