Chile’s World Bank cat bond target lifted again, now up to $350m

The Republic of Chile is clearly seeing strong investor demand for its new IBRD – Chile 2023 parametric earthquake catastrophe bond, with the World Bank IBRD issued transaction set to increase again, with between $325 million and $350 million now targeted.

Artemis reported first that the Republic of Chile was aiming to secure at least $150 million of parametric earthquake disaster insurance protection through the issuance via the World Bank’s multilateral development bank, the International Bank for Reconstruction and Development.

To read more details on the structure of the Chile catastrophe bond transaction and its parametric trigger please see our Deal Directory entry.

As we reported yesterday, sources told us that the target size for this new Chile catastrophe bond issuance was being pitched at between $250 million to as much as $300 million, so a possible 100% upsizing from the initial launch to investors.

At the same time the pricing guidance was updated, with it falling to the bottom end of the initial range, at 4.75%.

Now, another updated piece of information on this new World Bank facilitated parametric earthquake cat bond for Chile has emerged.

The target size of the issuance has been increased again, with now between $325 million and $350 million aimed for.

So, Chile’s new catastrophe bond will at least double in size, while the pricing will settle at the low-end of the initially marketed range.

The Republic of Chile’s new catastrophe bond has been very well-received, with the upsizing and pricing indicating strong execution.

You can read all about this new IBRD – Chile 2023 catastrophe bond in the extensive Artemis Deal Directory.