World Bank Capital-at-Risk Notes Program news

The Republic of Chile has lifted the target for protection from its new IBRD – Chile 2023 parametric earthquake catastrophe bond to as much as $300 million, a potential doubling in size for the World Bank IBRD issued transaction.

Chile’s new catastrophe bond will sit as a key component of a new catastrophe risk management strategy that the country is putting into place, with the proposed $150 million or greater parametric IBRD – Chile 2023 cat bond transaction set to play a key financing role for less frequent, but more severe earthquake events, Finance […]

The Republic of Chile is aiming to secure $150 million of parametric earthquake disaster insurance protection through a new IBRD – Chile 2023 transaction that is being issued by the World Bank’s multilateral development bank, the International Bank for Reconstruction and Development (IBRD).

The World Bank’s pipeline of catastrophe bonds to be issued for governments of its member countries has been impacted by market conditions in 2022, according to an interview with Michael Bennett of the World Bank Treasury.

At the COP27 climate change conference in Egypt yesterday the Vulnerable 20 Group of Finance Ministers (V20) of 58 climate vulnerable economies and the Group of Seven (G7) officially launched the Global Shield against Climate Risks, while the World Bank officially launched its Global Shield Financing Facility.

At the COP27 climate change conference in the coming days, the World Bank is set to announce the launch of the Global Shield Financing Facility (GS-FF), which will be an important new financing structure to channel capital to protect vulnerable nations against climate and disaster risks.

When it comes to the use of catastrophe bonds in disaster risk financing, so far we’re only “scratching the surface”, in terms of what can be done using the cat bond structure, according to Jorge Familiar, Vice President and Treasurer of the World Bank.

The calculation agent for the Philippines government’s World Bank issued IBRD CAR 123-124 catastrophe bond has now completed its analysis of recent super typhoon Noru’s winds and concluded that the storm wasn’t a triggering event and so no losses of principal will be suffered by investors in the cat bond notes.

While the World Bank has been a key driving force in the catastrophe bond market for many years, of late its senior leadership has been relatively quiet about the use of cat bonds as a key disaster risk financing and risk transfer option for its sovereign client-base.

The notes associated with the remaining $97.5 million of principal from the Philippines governments World Bank issued IBRD CAR 123-124 catastrophe bond that is exposed to tropical cyclones have now been marked down implying a total loss is expected by the market after super typhoon Noru, Artemis has learned.