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MetroCat Re parametric surge cat bond renewal now targets up to $100m


New York transport operator the Metropolitan Transportation Authority (MTA) is aiming to upsize its latest catastrophe bond, with up to $100 million in parametric storm surge protection now sought from the MetroCat Re Ltd. (Series 2023-1) transaction.

new-york-mta-logoThe New York Metropolitan Transportation Authority (MTA) returned to the catastrophe bond market at the start of this month, seeking what will be its fourth issuance.

The transportation organisation was seeking seeking $75 million or more in parametric named storm induced storm surge protection from the capital markets, through a renewal catastrophe bond issued by its Bermuda based special purpose reinsurance vehicle, MetroCat Re Ltd.

At its launch, a $75 million single tranche of Series 2023-1 Class A notes were on offer, designed to provide New York area storm surge insurance protection on a parametric and per-occurrence basis to the MTA.

We’re now told that the target size for this issuance has been increased, with between $75 million and $100 million of parametric storm surge protection now sought by the MTA.

The Metro Cat Re 2023-1 Class A notes come with a 1.337% expected loss and were initially offered to investors with price guidance in a range from 5.75% to 6.25%.

We’re now also told that the price guidance has been narrowed towards the lower-end of initial guidance, at a revised range of 5.75% to 6%.

Implying another strong result for a cat bond sponsor, with the potential for more protection than initially targeted to be secured, at a lower pricing level.

You can read all about the New York MTA’s new MetroCat Re Ltd. (Series 2023-1) catastrophe bond transaction and every other cat bond ever issued in the Artemis Deal Directory.

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