IslamicFinance.de

Mexico has newly issued a $485 million World Bank facilitated catastrophe bond, the IBRD / FONDEN 2020 transaction and sees it as an important part of the country’s social protection strategy. The new cat bond will provide the country with a four-year source of parametric earthquake and hurricane insurance protection, replacing the maturing coverage of the $260 million 2018 issuance IBRD CAR 118-119. The Government highlighted that Mexico is particularly exposed to natural disaster risks, with some 40% of the national territory, and about a third of its population, exposed to hurricanes, storms, floods, earthquakes and volcanic eruptions. The transaction was issued in four tranches, two exposed to different levels of earthquake risks and one each to Atlantic and Pacific hurricane risks.