London and Bermuda listed, Montpelier Re operated, reinsurance and ILS linked Blue Capital Global Reinsurance Fund, has published a prospectus and released a timetable for the first placing under a new programme, as it seeks to raise more capital.
As we wrote a couple of weeks ago, the stock exchange listed ILS and reinsurance linked investment fund is seeking to increase its capital-base in order to grow its capacity for underwriting and collateralising reinsurance and insurance-linked securities (ILS) business at the upcoming January renewals.
The net proceeds raised from this first share placement under the new placing programme will be put to work (or invested) in fully collateralised reinsurance-linked contracts and other investments, such as cat bonds, ILW’s etc, with exposure to insured catastrophe event risks. The majority of the newly raised capital is expected to be deployed at the January 2015 reinsurance renewals, according to the investment manager Blue Capital Management.
The prospectus and details have now been published and the timetable for investors to show interest and subscribe for shares has been disclosed along with it. The price for Ordinary Shares to be issued in this share placement is US$1.09 per Ordinary Share, which is today’s share price, and it is anticipated that commitments to buy shares must be received by 28th November 2014.
The results of the placement will then be announced on that day, followed by the shares being admitted for listing on the 2nd December.
The placing programme last for a year and would allow Blue Capital to raise as much as $250m for the listed ILS fund. But we understand that this is more likely to be a smaller capital raise, given market conditions and the need to keep capital under management aligned with the availability of the best underwriting opportunities.
We’ll update you when the results of the share placing are announced.