World Bank “extremely pleased” with investor response to Chile cat bond: Jorge Familiar, Treasurer

The World Bank is “extremely pleased” with the response from investors and reinsurance markets to the recent placement of $630 million of catastrophe bonds and catastrophe swaps to protect Chile, Jorge Familiar, Vice President and Treasurer told us in our latest Artemis Live video.

Jorge Familiar of the World Bank joined us in March 2023 for an Artemis Live interview to discuss the recent successful placement of $350 million of International Bank for Reconstruction and Development (IBRD) issued catastrophe bonds, alongside $280 million of catastrophe swaps, to provide the Republic of Chile with $630 million of earthquake insurance protection.

Familiar explained that the investor response was gratifying and said that it was important to time the issuance carefully, in order to maximise execution for the country.

“We are extremely pleased with the response,” Familiar said.

“Markets have been going through a period of volatility, and there are many elements of uncertainty.

“So, you know, finding the right time and the right structure to do this was was important and I don’t think that the outcome could have been any better,” he explained.

World Bank Treasurer Familiar added, “I’m very pleased with the result of the operation, by going simultaneously in bond and swap form really created value for for Chile.

“The size of the operation kept going up as market interest started materialising and then the pricing of the operation came out at very reasonable terms.

“So, you know, strong demand that helped us create significant value for Chile.”

Familiar also discussed the state of the catastrophe bond market, recognising that there are opportunities for World Bank member countries to benefit from capital markets capacity to support disaster risk financing and transfer at this time.

The full video interview is embedded below and can also be viewed in full, along with previous Artemis Live video interviews, over on our YouTube channel.

You can also listen in audio to all of our interviews by subscribing to the Artemis Live podcast here.

All of our Artemis Live video interviews have a focus on reinsurance, ILS and the efficiency of risk transfer and can be accessed directly from our YouTube Channel.

You can also listen in audio to these interviews by subscribing to the Artemis Live podcast here.

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