DEAL: world's first pandemic bond

Author: Amélie Labbé | Published: 20 Jul 2017

The World Bank’s pandemic bonds are the first instruments to transfer the risks associated with global infectious diseases to the financial markets. The multilateral raised $320 million from two separate three-year mortality catastrophe bond issuances on June 28.

The proceeds will help fund the World Bank’s Pandemic Emergency Financing Facility (PEFF), which provides funding for low income countries facing a disease outbreak. This was launched last year in response to the 2014 Ebola crisis in West Africa, which is estimated to have cost Sierra Leone, Guinea and Liberia nearly $3 billion.


"One financial framework element worth mentioning is the trigger structure reducing the principal at-risk notes"


The transaction is innovative on several fronts, notably the way it channels investor financing.

"One financial framework element worth mentioning is the trigger structure reducing the principal at-risk notes," said Cory Anger, global head of insurance-linked securities (ILS) structuring at GC Securities,...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register