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2025-09-16 17:18:18
[Large-Scale Financing by Giants Draws Attention to Risk Mechanisms] ⑴ Market news indicates that Sampo plc has successfully booked over €3 billion, with the offering priced at 5.875%, demonstrating strong market demand. The issuance of fixed-rate resettable perpetual restricted subordinated Tier 1 bonds (PNC10 RT1), totaling €300 million, is expected to be rated Baa2/BBB. The bonds feature a principal loss absorption mechanism linked to the issuer's individual and consolidated regulatory capital requirements. Upon the occurrence of a triggering event, coupon cancellation and a temporary write-down of principal are likely to be considered. The market is closely monitoring these risk mechanisms. ⑵ Citi served as the structuring advisor for the transaction, with BNP Paribas, Citigroup, Morgan Stanley, and Nordea acting as lead managers, highlighting the significance of the issuance and its broad institutional participation. Proceeds from the bond issuance will be used for Sampo Group's general corporate and financing purposes and to strengthen its capital base, with potential use partially for refinancing existing subordinated bonds. Sampo plc also announced a tender offer for a portion of its existing subordinated bonds, demonstrating its active recapitalization efforts. (3) Notably, this bond issuance is targeted at qualified counterparties and professional investors, not retail clients, reflecting its inherent risks and complexity. Furthermore, the issuance and sale of the bonds will be conducted outside the United States in accordance with relevant regulations, with particular emphasis on distribution restrictions. The bonds will be governed by English and Finnish law and listed on the London Stock Exchange with a minimum denomination of €200,000, highlighting their institutional nature as an investment.
