Pandemic bond to pay World Bank if coronavirus advances

As financial markets fretted over the spread of a coronavirus outbreak in China this week, one security was in the firing line more directly than any other. Holders of the World Bank’s pandemic bond will lose principal if the disease spreads by a sufficient amount, writes Jasper Cox.
The World Bank’s pandemic bond, issued in 2017, provides funding for the development bank’s Pandemic Emergency Financing Facility (PEF) if an outbreak of one of six viruses meets certain conditions.
Holders of the $320m worth insurance-linked securities (ILS) are paid a coupon that would look generous in many conventional ...Already a subscriber? Login
Further Reading
-
Covered Bonds
Crédit Agricole Italia readies first green covered bond
-
Syndicated Loans
ESG debt volumes up 59% in 2020 but pricing to tighten further
-
Africa
'Everything else is secondary' to debt transparency as Zambia-IMF talks extended
-
Market News
China policy and markets round-up: CBIRC chief warns against inflow risks, issuers move to exchange market for carbon neutrality bonds