Sampo plc’s debt financing at the end of 2012 amounted to EUR 2,162 million and interest bearing assets including bank accounts to EUR 1,048 million. During the year the net debt decreased to EUR 1,113 million (1,208). At the end of 2012 gross debt to Sampo plc’s equity was 32 per cent (35).
The financial liabilities in Sampo plc’s balance sheet on 31 December 2012 consisted of issued senior bonds and notes of EUR 1,710 million (1,677) and EUR 451 million (652) of issued short-term CPs. The average interest on Sampo plc’s debt on 31 December 2012 was 2.33 per cent (3.73).
In February 2012 Sampo plc issued a 5-year senior bond of EUR 500 million under the Euro Medium Term Note Programme and also bought back senior bond 6.339% 2012 issued in April 2009 with EUR 250 million. In April Sampo plc repaid the remaining 355 million of the afore-mentioned bond. In May 2012 Sampo plc increased the notional amount of the senior bond 3.25% 2014 from EUR 200 million to EUR 300 million. During the fourth quarter the amount of outstanding CPs was gradually decreased due to exceptionally strong liquidity. The outstanding issues, CPs and private placements are presented in the table below.
Outstanding Debt Instruments
Sampo plc, 31 December 2012
|Issued Debt Instruments||Coupon||Swap||Effective Rate||Maturity Date|
|Senior Bond SEKm 4,000||Stibor 3M+1.50%||2.8680%||16 Sep 2013|
|Senior Bond EURm 300||4.2500%||Euribor 3M + 1.4727%||1.6627%||22 Feb 2016|
|Senior Bond EURm 300||3.2500%||3.0377%||3 Oct 2014|
|Senior Bond EURm 500||4.2500%||Euribor 3M + 2.7910%||2.9810%||27 Feb 2017|
|CP's issued EURm 451||EURIBOR + Margin||0.9112%||3M|
|Private Placements EURm 149||2.6412%|
|Total EURm 2,162||2.3271%|
To balance the risks on the Group level Sampo plc’s debt is tied to short-term interest rates and issued in euro or Swedish krona. Interest rate swaps are used to obtain the desired characteristics for the debt portfolio. These derivatives are valued at fair value in the profit and loss account although economically they are related the underlying bonds. As a result Sampo plc maintains the flexibility to adjust derivative position if needed but this comes at the cost of increased volatility in the Holding segment’s net finance costs.
The underlying objective of Sampo plc is to maintain a well-diversified debt structure 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.
More information on Sampo Group’s outstanding debt issues is available at www.sampo.com/debtfinancing.