World Bank Project Deck
CATASTROPHE BOND EXAMPLE
Provides Insurance to Chile for Earthquake Events
On March 17, 2023, the World Bank (IBRD) issued a joint catastrophe bond and swap transaction that
provides a total of USD 630 million of earthquake insurance to the Government of Chile for three years,
consisting of USD 350 million of catastrophe bonds and USD 280
million of catastrophe swaps. The bond is IBRD's 19th cat bond and
the first listed on the Hong Kong Exchange (HKEX).
Distribution by Geography
Bermuda Asia
4%
2%
Distribution by Investor Type
Asset
Management
USD 350 million 3-year Cat Bond
Summary Terms and Conditions
Issuer Rating:
Maturity:
Aaa/AAA
3-year
North
America
40%
Europe
54%
Pension
Fund
6%
15%
Insurer /
Reinsurer
3%
Total Amount:
Settlement Date:
Maturity Date:
USD 350 million
Bond Coupon:
Risk Margin:
Funding Margin:
Covered Perils:
ILS Fund
76%
Trigger:
Leads:
03/24/2023
03/31/2026
Compounded SOFR +
Funding Margin + Risk
Margin
+4.75% p.a.
+0.04% p.a.
Earthquake
Parametric, per
occurrence
Aon Securities,
GC Securities and
Swiss Re Capital
Markets
Chile Cat Bond Press Release
Chile Cat Bond listed on the HKEX Press Release
Net proceeds of the bonds described herein are not committed or earmarked for lending to, or
financing of, any particular projects or programs, and returns on the bonds described herein
are not linked to the performance of any particular project or program."
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