world bank

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 African countries of Madagascar and Morocco are the latest to benefit from a Catastrophe Deferred Drawdown Option (Cat DDO) instrument issued by the World Bank, as further steps are taken to make them more resilience to natural disasters and climate related risks.

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.

The World Bank has now successfully completed the issuance of the first catastrophe bond to benefit the Philippines with a source of capital markets backed disaster insurance, as the $225 million IBRD CAR 123-124 cat bond transaction listed on the Singapore Exchange (SGX) this morning.

The inaugural catastrophe bond to benefit the Philippines will also set another ILS market first, as the $225 million of notes issued through the World Bank’s IBRD CAR 123-124 cat bond transaction will be listed on the Singapore Stock Exchange (SGX).

The first catastrophe bond ever issued to cover natural peril exposures in the Philippines has now been priced, as the landmark transaction from the World Bank gets nearer to completion.