Finnish insurer Sampo announced plans on Monday to buy back up to 300 million euros of its existing subordinated debt and issue new capital notes, as it continues to reshape its balance sheet following a strategic shift to focus on property-and-casualty insurance.
The company said it has launched tender offers for two series of its outstanding Tier 2 notes, a form of debt that counts towards regulatory capital, due in 2049 and 2052.
The buyback is capped at 300 million euros and is conditional on the successful sale of an equivalent amount of new perpetual Tier 1 notes, a different type of regulatory capital instrument.
Sampo described the transactions as part of its "ordinary capital management actions."
The move follows Sampo's multi-year transformation into a pure property-and-casualty insurer, which included the full acquisition and ongoing integration of Danish insurer Topdanmark.
The Helsinki-based group has actively managed its debt profile in recent years, including conducting tender offers in 2020 to reduce its gross debt.
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