World Bank pandemic cat bonds launched
Thursday, 06 08 2017, Category: Insurance and Reinsurance, Country: World
The first catastrophe bonds that will support the World Bank designed Pandemic Emergency Financing Facility (PEF) have been launched to the investment community, with two series of capital at risk notes that are being issued by the International Bank for Reconstruction and Development, a $100 million transaction we’re naming IBRD CAR 111-112.
The IBRD will issue two series of catastrophe-linked Capital At Risk notes (CAR Series 111 and CAR Series 112) through its debt issuance facility, which will be sold to qualified investors and insurance-linked securities (ILS) specialists.
The notes will provide parametric protection linked to the occurrence of specific pandemics, we understand, with any triggered default and payout designed to benefit the Pandemic Emergency Financing Facility (PEF) and provide the needed liquidity and capital to help stricken countries or regions in their response and recovery.