Blue Fin Ltd. a special purpose vehicle incorporated in the Cayman Islands is marketing a new catastrophe bond deal on behalf of Allianz Argos 14 GmbH. Allianz is entering into this deal to provide itself with a source of multi-year reinsurance for certain U.S. hurricanes and earthquakes. This 3 year, $150m deal has been given a preliminary rating of ‘BB-‘ by Standard & Poor’s.
Goldman Sachs and Aon Benfield Securities Inc. are arranging and marketing the deal with Allianz SE acting as counterparty guarantor. As mentioned in the headline; the highlight of this deal, and another sign of the way the market has reacted and taken heed of the past years difficulties, is the lack of a total-return swap counterparty. In it’s place the notes from Blue Fin Ltd. will be invested in Kreditanstalt fur Wiederaufbau’s (KfW) floating-rate notes with a final maturity of 3.75 years and puttable quarterly after the first six months. KfW is an extremely highly rated (AAA/Stable/A-1+) institution and its obligations are guaranteed by the German government.
Further details of this deal are now included in the Artemis Deal Directory.
Subscribe for free and receive weekly Artemis email updates
Sign up for our regular free email newsletter and ensure you never miss any of the news from Artemis.