We’ve learned a couple of more details in regards to the latest Silk Road Re Limited catastrophe bond transaction that is about to be issued out of Hong Kong, with the notes set to offer sponsor Taiping Reinsurance Company (Taiping Re) with a US $35 million source of three years of retrocessional protection.
Yesterday, we reported that Taiping Re was set to sponsor its first catastrophe bond and that it can grow to be the fourth cat bond to be issued using a Hong Kong domiciles special purpose insurance vehicle.
We’d suggested it will be near US $32 million in size, needing to clear a hurdle of that quantity to give you the chance to profit from Hong Kong’s insurance-linked securities (ILS) grant scheme.
We’ve now been told by sources that this privately placed cat bond, it is just not a 144A deal, has been priced and with that information has come the scale, which is alleged to be US $35 million.
As well as, we’ve learned that the Silk Road Re cat bond notes will provide Taiping Re with a three-year source of multi-peril and multi-territory retro reinsurance, with the coverage running to the top of 2027 and maturity set for early January 2028.
Sources also confirmed that the Silk Road Re cat bond notes will cover each Chinese earthquake risk and certain US perils, as we’d reported, but we’re now told the US peril coverage is for named storm risks.
The trigger details remain the identical, as a parametric trigger for the China quake cover and an industry-loss trigger for the US named storm protection.
We’ve also now learned that the US $35 million of notes pays investors an expansion of 6%, having been priced successfully late yesterday.
Finally, we’re told that GC Securities, the insurance-linked securities (ILS) and capital markets investment banking arm of reinsurance broker Guy Carpenter, is the only real structuring agent and bookrunner that helped Taiping Re get its debut catastrophe bond to market.
You’ll be able to read all about this latest Silk Road Re Limited catastrophe bond and details on every other cat bond ever issued within the extensive Artemis Deal Directory.