World Bank Capital-at-Risk Notes Program news

The first catastrophe bond to benefit the Caribbean island nation of Jamaica has now been launched to investors, with the IBRD CAR 130 transaction, that is being issued via the World Bank, set to provide the Government with a $175 million or greater source of named tropical storm and hurricane disaster insurance protection.

The Bureau of the Treasury of the Republic of the Philippines has issued notice to the calculation agent for its World Bank facilitated IBRD CAR 123-124 catastrophe bond transaction that it believes recent super typhoon Goni to be an applicable event that requires a calculation of the modelled losses to be undertaken.

The Philippines government’s World Bank facilitated IBRD CAR 123-124 catastrophe bond transaction is under threat from typhoon Goni, which may cause a partial loss of principal for investors in the cat bond if it maintains significant wind speeds as it approaches Manila.

The recently completed first catastrophe bond for the Philippines provides its government with faster access to post-disaster funding, enabling it to respond more rapidly and effectively to support the needs of its citizens when the largest catastrophes strike.

The Taal volcano in the Philippines which began erupting yesterday poses a potential threat to the Philippines government’s  IBRD CAR 123-124 catastrophe bond transaction, which would be on-risk should a major earthquake occur due to the volcano’s current active state.

The extent of the devastation caused by recent typhoon Kammuri’s impacts on the Philippines has become clearer, as the latest report from the government shows more than 460,000 properties damaged.

Typhoon Kammuri has intensified in the last day and remains on track for a landfall in the Philippines. Known locally as typhoon Tisoy, the storm has now intensified to a Category 3 equivalent and approaches the Philippines soon after the issuance of its first catastrophe bond.

Typhoon Kammuri is eyeing the Philippines with the potential to intensify into a super typhoon just days after the launch of the country’s first catastrophe bond that provides it with $150 million of tropical cyclone disaster insurance protection from the capital markets.

Singapore and the World Bank aligned their missions to collaborate on the recent landmark first catastrophe bond issuance for the Philippines, as the pair look to stimulate insurance-linked securities (ILS) issuance in Asia as a financial solution for climate resilience.

The government of the Philippines sees the successful issuance of its first catastrophe bond, the World Bank facilitated $225 million IBRD CAR 123-124 cat bond, as an example of the country “climate proofing” itself, as well as an endorsement of its natural disaster resilience strategy.