The London and Bermuda listed, reinsurance and insurance linked investment Blue Capital Global Reinsurance Fund, has successfully raised $21.2m in its latest share placement, taking its total share capital to just over $217m.
The Blue Capital Global Reinsurance Fund is a listed ILS fund run by investment manager Blue Capital Management, a subsidiary of Bermudian reinsurance firm Montpelier Re.
Blue Capital launched its latest share offering for the fund just over a week ago, hoping to raise some additional capital in time for the January reinsurance renewal season. The additional $21.2m raised will be invested in fully collateralised reinsurance-linked contracts and other ILS investments carrying exposures to insured catastrophe event risks, with the majority of the new capital likely to be invested in the January 2015 reinsurance renewals.
In total, 19,487,560 new Ordinary Shares in the fund were sole at a price of US$1.09 per Ordinary Share, which raised the gross proceeds of US$21.2m.
The new shares will be listed both on the London Stock Exchange’s Specialist Fund Market and on the Bermuda Stock Exchange (BSX). After the listings are completed there will be 199,105,326 Ordinary Shares in the Blue Capital Global Reinsurance Fund in issue, which gives us the total share capital at the $1.09 issue price of just over $217m.
This is just the first placing in the fund’s latest Placing Programme, so we could see additional capital raises for the Blue Capital Global Reinsurance Fund through 2015, likely timed to coincide with the major reinsurance renewal seasons.