Kizuna Re Ltd. – Full details:
The Kizuna Re Ltd. privately placed, not 144A compliant, catastrophe bond transaction provides Tokio Marine with $160m of Japan typhoon risk cover over a three year period.
Kizuna Re is designed to replace some of the cover that Tokio Marine had through their lapsed Fhu-Jin cat bond transaction.
The SPV Kizuna Re Ltd. was established in Bermuda for the purpose of issuing the catastrophe bond notes. The deal was placed with a small number of investors, including Clariden Leu, and was privately placed.
Aon Benfield have acted as sole bookrunner for the transaction.
Kizuna Re is a three year cat bond deal and is due to mature on the 8th September 2014. The floating rate notes pay a quarterly coupon of U.S. Libor + 5.2%.