Solidum in first blockchain cat bond listing on an exchange

A private insurance-linked securities (ILS) or catastrophe bond issuance completed using the blockchain by Solidum Re has been listed on The International Stock Exchange (TISE), in what is a first for the market.

Dom Re IC Limited, a cell of Solidum Re (Guernsey) ICC Limited, which is itself a subsidiary of specialist ILS manager Solidum Partners AG, has issued the private cat bond notes that have been digitised on a private blockchain.

The transaction is a renewal of last year’s Dom Re transaction and this new deal is now listed in our Deal Directory under the listing for Dom Re IC Limited 2018.

The private cat bond transaction features U.S. wind risk and a one-year reinsurance arrangement for an unknown cedant. The $15 million of notes were issued to investors which are all ILS funds.

Solidum used its ILSBlockchain, which allows private ILS issuances to be completed more efficiently by replacing the role of a traditional settlement system for the issuance.

Solidum Re acted as the paying agent and common depository for the permanent global note, as well as the blockchain permission grantor and blockchain sponsor.

Solidum had recently signed up its Solidum Re subsidiary as a member, approved to arrange and sponsor the listing of debt securities and investment vehicles, of TISE, allowing it to list notes from existing or future ILS issuances through the vehicle.

Now $15 million of Principal-at-Risk Participating Notes due 2024 that were issued by Dom Re have been listed on TISE, becoming the first ILS transaction digitised on the blockchain to be listed on an exchange.

Fiona Le Poidevin, CEO of The International Stock Exchange Group (TISEG), commented, “I am delighted to welcome another ‘world first’ to TISE. Clearly there is huge potential in the use of blockchain technology generally but especially within capital markets and so I am delighted that now we are part of such a ground-breaking development. This listing adds to our reputation for being open to innovative ideas which are shaped by the use of new technologies as well as cutting-edge listings within ILS.”

Cedric Edmonds, Director of Solidum Re, explained, “I am delighted that Dom Re has been listed on TISE. The Dom Re structure is not only ground-breaking in the ILS sector but also in terms of the dematerialisation of notes generally and so it is fantastic that now we have been able to take this a step further and make it a ‘world first’ listing on a regulated exchange.

“The TISE listing not only adds to our use of the high quality infrastructure available in Guernsey but it also raises our visibility and increases potential distribution as the notes are now eligible listed investments for many investor groups. I look forward to working with the team at TISE again in the future.”

Also read:

First blockchain settlement for cat bond completed by Solidum.

Solidum completes second blockchain catastrophe bond issue.