The first two parametric catastrophe bonds to be issued directly by the Asian Development Bank (ADB) on behalf of its member countries the Kyrgyz Republic and Tajikistan are now targeted for a slight upsizing to as much as $80 million each, while the pricing for the risk margin each set of notes will pay has risen to the upper-ends of guidance.
As we’d reported earlier this month, the Asian Development Bank (ADB) launched its first offerings of catastrophe bonds, with the initial target being to secure $75 million in parametric earthquake and extreme precipitation disaster risk financing from the capital markets for the Kyrgyz Republic and Tajikistan.
The two parametric cat bond issuances are being issued through the ADB’s own Global Medium-Term Note Program, as Capital at Risk notes, as the Asian Development Bank uses its own treasury facilities to issue these catastrophe-linked securities, or capital-at-risk notes, to investors.
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