After assisting the Asian Development Bank (ADB) in the issuance of its first catastrophe bond offerings, Michael Roth of Munich Re has highlighted how the transactions are an important proof of the reinsurer’s Capital Partners Public Sector objectives.
We reported in late April, that the Asian Development Bank’s (ADB) first catastrophe bonds had been priced in the market, securing a $160 million capital market-backed source of parametric earthquake and extreme precipitation disaster risk financing, evenly split $80 million each across issuances for beneficiaries the Kyrgyz Republic and Tajikistan.
This marked a significant initial advancement in the catastrophe bond market for the ADB and its member countries, as the multilateral development bank has successfully demonstrated the concept of issuing what it refers to as Disaster Relief Bonds (DRB) to assist two of its members, thereby obtaining effective disaster risk financing from institutional and insurance-linked securities (ILS) investors.
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