You are using an old version of your web browser.

Please note that the website might not function correctly using an outdated browser. We recommend updating your browser or using another one.

This site uses cookies to offer you the best user experience. By continuing browsing this site you agree to the use of cookies. Alternatively you may change your browser settings. For further information, please read our Privacy Notice.

I agree

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 and life 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.

Group's parent company Sampo plc is issuing senior debt primarily for short-term liquidity management and capital structure optimization purposes. By nature, Sampo plc is structurally subordinated to its subsidiaries and the associated regulated companies, and hence it is dependent on the dividend capacity of these core holdings. As a principle, the stronger the capital adequacy and the expected profitability, and the smaller the volatility of profits at the Group level, the higher the leverage can be in the parent company.

In Sampo plc's debt management the key principles are diversification over markets, maturities and investors. Bonds issued within EMTN programme are the main sources of funding. Commercial paper markets in Finland, where Sampo plc is a regular issuer, are relatively large and utilized as well.  In addition, Sampo plc is issuing from time to time private placements with separate documentation in medium-term maturities (Senior, Separate Documentation) mostly for domestic retail investors. Loans and revolving credit facilities may also be used as a funding and liquidity management tool.

With regard to public bonds and notes, diversification over maturities and investors is sought to mitigate refinancing risk. In terms of currencies, natural choices are EUR and SEK. In terms of rates, floating rate basis is a natural choice because it acts as a hedge within the Group. However, Sampo plc is ready for issuance in any structure or currency provided that maturity, investor base and spread targets are met. Derivatives executed with ISDA/CSA counterparties are used to adjust risk profile of issued debt.

Current instruments issued by Sampo plc and the maturity structure of Sampo plc debt are as follows:

Information on the Debt Instruments Issued by Sampo plc

31 March 2021

Instrument and Principal Coupon Swap Effective Rate Maturity
Senior Bond 360 EURm 1.50% - 1.59% 16 Sep 2021
Senior Bond 118 SEKm 0.88% Euribor 6M+
-0.14% 23 May 2022
Senior Bond 250 SEKm Stibor 3M+ 0.55% Euribor 6M+
-0.12% 23 May 2022
Senior Bond 522 EURm 1.00% - 1.01% 18 Sep 2023
Senior Bond 373 EURm 1.250% Euribor 6M+
0.23% 20 May 2025
Senior Bond 500 EURm 1.625% - 0.85% 21 Feb 2028
Senior Bond 1,000 NOKm 3.100% Euribor 6M+
0.25% 7 Sep 2028
Hybrid Tier 2 Bond under separate documentation 500 EURm 3.375% - 3.48% 23 May 2030
Senior Bond 500 EURm 2.25% - 1.49% 27 Sep 2030
Hybrid Tier2 Bond 1,000 EURm 2.50%   2.55% 3 Sep 2032


Debt Instruments by Maturity

31 March 2021



Updated 5 May 2021