SAMPO PLC STOCK EXCHANGE ANNOUNCEMENT 28 JUNE 2006 at 13:00
SAMPO BANK TO SECURITIZE CREDIT RISK
Sampo Bank plc, part of the Sampo Group, will securitize approximately one billion euros of the exposure of corporate loans in its balance sheet. The reference portfolio consists of the loans of over 600 Finnish companies. The loans will remain in Sampo Bank's balance sheet and the arrangement will thus not affect the agreements between the bank and its customers in any way. This is a mechanism by which Sampo Bank can adjust its credit risk profile and release capital for future growth.
Securitization will be implemented by a company established especially for this purpose. The company will issue bonds whose final return will be dependent on realized credit losses from the reference loan portfolio, and offer them for subscription by investors. The company will compensate credit losses arising for the bank on the basis of a credit derivatives contract between it and the bank.
Hannu Vuola Head of Group Communications Tel. +358 10 516 0040
DISTRIBUTION: Helsinki Stock Exchange The principal media Financial Supervision Authority www.sampo.com
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