The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

IBRD taps cat bonds for Mexico, builds on pandemic deal success

The IBRD's latest foray into capital-at-risk notes brings a familiar name back to the cat bond market.

Mexico has brought its fourth catastrophe bond to the market in a deal that saw the International Bank for Reconstruction and Development (IBRD) tap its capital-at-risk programme for just the third time since its creation in 2014 – and only weeks after a ground-breaking pandemic bond transaction.

The World Bank created the IBRD’s capital-at-risk programme as a way for it to shift developing market natural disaster risks to the capital markets. Its first transaction, in 2014, was a $30 million bond linked to earthquake and storm risk in the Caribbean. The recent pandemic bond was the second capital-at-risk notes deal.

Now the Bank has added to its tally of insurance-linked issuance by wrapping up in early August a $360 million catastrophe bond designed to provide emergency help in the event of natural disasters in Mexico. The deal brings the total raised in catastrophe risk trades by the Bank – either as arranger or through an intermediation role through bonds or swaps – to $2.5 billion, with about $1 billion of that coming in just the last two months.

Mexico is well known to cat bond investors. It was the first sovereign to tap that market, back in 2006, through a $160 million earthquake deal from Cat-Mex, an SPV, with payments to Swiss Re.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree