ORIGINAL PUBLICATION HERE
The first catastrophe bonds to benefit all four member nations of the Pacific Alliance trade bloc in Latin America is set to increase in size, as the mooted $1 billion cat bond issuance has now had its target increased to as much as $1.39 billion of earthquake risk coverage for the region.
The first Pacific Alliance catastrophe bond issuance is made up of five series of earthquake-linked capital-at-risk notes, which are being issued through the World Bank’s International Bank for Reconstruction and Development (IBRD) global debt facility and will provide insurance or reinsurance protection to Pacific Alliance member nations.