Debt instruments and ratings

The underlying objective of Sampo plc is to maintain a strong but efficient balance sheet, a well-diversified debt structure, relatively low leverage and strong liquidity in order for the company to be able to arrange financing for strategic projects if needed. Strong liquidity and the ability to acquire financing are essential factors in maintaining Sampo Group’s strategic flexibility. The Group will target a financial leverage below 30 per cent.

Management of the debt instruments

Sampo Group's funding consists of senior debt instruments and subordinated obligations eligible for Solvency Capital.

Sampo plc's subsidiaries conducting P&C insurance businesses do not use senior debt as a source of funding. However, they use subordinated obligations as part of their solvency capital in accordance with internal capitalization targets and in compliance with regulatory rules. Maturities and other terms of such liabilities are largely determined by regulatory rules and by rating agencies' criteria.

For Sampo plc, bonds issued within EMTN programme are the main sources of funding. Sampo can also issue commercial papers and has established a commercial paper programme with Nordic banks for issuances in Finland, where the market is active and relatively large. In addition, Sampo plc may issue private placements with separate documentation. Loans and revolving credit facilities may also be used as a funding and liquidity management tool.

Diversification over maturities is sought to mitigate refinancing risk. Sampo plc mainly issues in EUR, but the EMTN programme allows also issuances in other currencies.

Information on the debt Instruments issued by Sampo plc
30 June 2024

Instrument Nominal, EURm Coupon, % Maturity
Senior Bond  162 1.250 30 May 2025
Senior Bond  313 1.625 21 Feb 2028
Senior Bond  NOKm 1,000 3.100 7 Sep 2028
Hybrid Tier 2 Bond under separate documentation  500 3.375 23 May 2029
Senior Bond  397 2.25 27 Sep 2030
Hybrid Tier2 Bond  1,000 2.50 3 Sep 2032

 

Debt instruments by maturity
30 June 2024


Debt key figures
30 June 2024

Sampo plc Key figures
Net debt, EURm 870
Gross debt to equity, % 46.2
Financial leverage, %* 31.6
Sampo Group Key figures
IFRS equity, EURm 7,349
Hybrid bonds, EURm 1,642
Senior debt, EURm 956
Financial leverage, %* 26.1

*=Debt/(Debt+Equity)

Updated