Philippines and World Bank bring cat bond first

By Jasper Cox
26 Nov 2019

The World Bank has issued the first catastrophe bond to be sponsored by an Asian government, and the first to be listed on the Singapore Exchange. The Philippines will receive protection against damage caused by earthquakes and cyclones, writes Jasper Cox.

The deal insures the country against losses of up to $225m. The bond has two tranches: $75m of earthquake protection and $150m of protection from tropical cyclones.

If an earthquake or a cyclone is projected to cause a certain amount of loss, the bond will trigger, meaning investors ...

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