DEXB Dexia

By William Horobin

PARIS--The head of French debt-issuing agency Agence France Tresor, Philippe Mills, will head a new municipal financing bank, French Finance Minister Pierre Moscovici said Wednesday.

The new municipal financing bank, the Societe de Financement Local, will be majority owned by the French state and is designed to fill the gap left by Dexia SA's (DEXB.BT) retreat from municipal finances.

Mr. Mills' replacement is due to be finalized at the beginning of March.

Write to William Horobin at william.horobin@dowjones.com