RBC DEXIA POISED TO BE FUND SERVICES LEADER IN ITALY UNDER UBI BANCA DEAL

Posted September 29, 2009

LONDON, MILAN and BERGAMO, Italy – RBC Dexia Investor Services and Unione di Banche Italiane scpa (UBI Banca) have entered into an agreement for UBI Banca to transfer its depositary bank business to RBC Dexia, under a deal expected to close in the first half of 2010, pending regulatory approval.

The agreement will make RBC Dexia the leading service provider in Italy, the sixth-largest fund market in Europe, and enable UBI Banca to further focus on its core business of providing banking services and products to its customers.

UBI Banca’s depositary bank business has over €19 billion ($27.7 billion) in assets under custody mainly related to the fund management activities of UBI Banca’s subsidiary UBI Pramerica, the third-largest fund manager in Italy. The agreement also includes certain correspondent bank agreements regarding the provision of paying agent services in Italy for Luxembourg SICAVs and Dublin UCITS, subject to client consent.

“This agreement marks a meeting of two strong organizations with shared corporate values and a commitment to support the growth and development of their clients,” says José Placido, CEO of RBC Dexia Investor Services. “Our global service capabilities make us the perfect strategic partner for UBI Banca on this transaction as the Italian fund management community continues to evolve.”

Under the agreements, RBC Dexia will also provide custody and settlement services to UBI Banca for international securities activities, for both client and proprietary transactions. Based on a 10-year contract for RBC Dexia to provide depositary and fund administration services to UBI Pramerica, the value of the agreement is €93 million ($135.5 million)

“The transfer of these specialist activities will allow UBI Banca to further optimize operational risk and efficiency and to continue to focus and invest in our core business,” says Victor Massiah, Chief Executive Officer, UBI Banca.