Peru cat bond pay out of $60m for earthquake confirmed

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Peru’s earthquake catastrophe bond will make a $60 million partial pay out of its principal to the country after its parametric triggering was confirmed in the calculation agent report, it has now been confirmed to us.

This $200 million IBRD CAR 120 Peru quake catastrophe bond, part of the World Bank’s giant Pacific Alliance issuance of earthquake cat bonds for the four nations of the trading bloc, was triggered by the magnitude 8.0 earthquake that struck Peru on Sunday 26th May.

That earthquake, which as we explained at the time it occurred suggested a 30% pay out of the cat bond’s principal looked likely, has now been deemed strong enough to breach the required parameters and as a result investors in the bond will face a loss.

Peru cat bond payout decision within 20 days: Minister of Finance

FULL ORIGINAL PUBLICATION HERE

The decision as to whether Peru’s earthquake exposed IBRD CAR 120 catastrophe bond will payout a portion of the investor principal is expected within 20 days of the magnitude 8.0 earthquake that struck Peru on Sunday 26th May, according to the country’s Finance Minister.

Carlos Oliva, the Minister for Finance and the Economy in the Peruvian government spoke yesterday about the earthquake and the fact that preliminary information suggests that the country will be due a payout of some of the parametric disaster insurance the World Bank issued IBRD CAR 120 catastrophe bond provides.

As we explained on Monday this week, the magnitude 8.0 earthquake struck Peru in a relatively sparsely populated area of the Amazon jungle. However, it was the most intense quake to strike the country in twelve years, with strong shaking was felt as far as 600 miles away from the epicentre and damage widely reported to homes, commercial buildings and infrastructure.

Peru cat bond payout decision within 20 days: Minister of Finance

FULL ORIGINAL PUBLICATION HERE

The decision as to whether Peru’s earthquake exposed IBRD CAR 120 catastrophe bond will payout a portion of the investor principal is expected within 20 days of the magnitude 8.0 earthquake that struck Peru on Sunday 26th May, according to the country’s Finance Minister.

Carlos Oliva, the Minister for Finance and the Economy in the Peruvian government spoke yesterday about the earthquake and the fact that preliminary information suggests that the country will be due a payout of some of the parametric disaster insurance the World Bank issued IBRD CAR 120 catastrophe bond provides.

As we explained on Monday this week, the magnitude 8.0 earthquake struck Peru in a relatively sparsely populated area of the Amazon jungle. However, it was the most intense quake to strike the country in twelve years, with strong shaking was felt as far as 600 miles away from the epicentre and damage widely reported to homes, commercial buildings and infrastructure.

Peru’s World Bank cat bond could be triggered by M8.0 earthquake

FULL ORIGINAL PUBLICATION HERE

A magnitude 8.0 earthquake that struck Peru yesterday, Sunday 26th May, could trigger the IBRD CAR 120 catastrophe bond, which was part of the Pacific Alliance issuance, with the available data suggesting that a 30% loss of principal should be expected by investors in the cat bond.

The magnitude 8.0 earthquake struck Peru yesterday with the epicentre in a relatively sparsely populated area of the Amazon jungle, but it was the most intense quake to strike the country in twelve years, reports say, with damage quite widely reported to homes and commercial buildings.

Strong shaking was felt as far as 600 miles away from the epicentre, which was situated around 110 miles east of the town of Moyobamba, which is the capital of the San Martín region of north Peru.