The first parametric catastrophe bond to cover pure volcanic eruption risk, which was brought to market for the Danish Red Cross and is the first cat bond with a purely humanitarian focused payout strategy, has now been listed in Guernsey on The International Stock Exchange (TISE).
The volcano catastrophe bond has been admitted for listing to TISE’s Qualified Investor Bond Market (QIBM) and also to its sustainable market segment, TISE Sustainable.
The cat bond transaction was previously recognised for its environmental, social and governance (ESG) credentials by he Guernsey International Insurance Association (GIIA).
The Danish Red Cross catastrophe bond was brought to market using the Dunant Re IC Limited incorporated cell of Replexus ICC (Guernsey) Limited.
Replexus is an insurance-linked securities (ILS) specialist facilitator and consultancy operated by industry executive Cedric Edmonds.
Dunant Re IC Limited issued the humanitarian catastrophe bond and the notes were settled using Replexus’ innovative blockchain-based Insurance Linked Securities (ILS) platform, ILSBlox.
The listing on TISE of the US $3 million Dunant Re Series 2021-1, Class VE principal-at-risk, callable, participating notes due 2024 was also facilitated by Replexus ICC, being a Member of TISE for Listing Agent purposes.
Cedric Edmonds, Founder and Director at Replexus ICC, commented, “I am delighted with this listing on TISE. TISE provides a cost-effective and efficient process for the admission of bonds to a recognised stock exchange, which is hugely valued by all those involved in the transaction, including the sponsors, the Danish Red Cross, and the investors. We look forward to facilitating further bond issuances which utilise ILS capacity to support humanitarian work via a listing on TISE.”
Anthony Byrne, Head of Bond Markets at TISE, added, “I am extremely pleased to welcome Dunant Re to our Qualified Investor Bond Market (QIBM) and our sustainable market segment, TISE Sustainable. It is fantastic to play a part in this world-first issuance, which combines innovative technology and sustainable finance to support the Danish Red Cross in their humanitarian initiatives. This demonstrates the growing demand which we are seeing for listings on both the QIBM and TISE Sustainable and I believe that we have the right environment for listing many more similar catastrophe bonds in the future.”
You can read more about the Danish Red Cross volcano catastrophe bond in our Deal Directory.