The recent $100 million Nakama Re Pte. Ltd. (Series 2025-1) catastrophe bond sponsored by Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, was the first ever cat bond issuance to utilise bonds issued by the Asian Development Bank (ADB) as collateral assets.
Being a fully-collateralized reinsurance arrangement to provide Zenkyoren with multi-year protection against earthquakes in Japan, we understand the proceeds from the sale of the $100 million Nakama Re 2025-1 catastrophe bonds will initially be invested in an Asian Development Bank (ADB) note.
Zenkyoren has utilised the ADB note as a collateral asset for its latest catastrophe bond issuance as the sponsor sees this as a responsible investment aligned with its sustainability policy.
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