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World's first humanitarian catastrophe bond listed on TISE

World's first humanitarian catastrophe bond listed on TISE

Thursday 02 December 2021

World's first humanitarian catastrophe bond listed on TISE


The Guernsey-based International Stock Exchange has listed the world's first humanitarian catastrophe bond on its sustainable market segment.

Sponsored by the Danish Red Cross, the bond has been listed on the Qualified Investor Bond Market (QIBM) and has been granted admission to TISE Sustainable.

This first humanitarian catastrophe bond covers pure volcanic eruption, and has been issued by Dunant Re IC Limited, which is an incorporated Cell of Replexus ICC (Guernsey) Limited. 

The bonds are settled using Replexus’ blockchain-based Insurance Linked Securities (ILS) platform, ILSBlox.

Anthony Byrne, Head of Bond Markets at TISE, was pleased to be able to utilise the organisation's sustainable market segment. 

“I am extremely pleased to welcome Dunant Re to our Qualified Investor Bond Market (QIBM) and our sustainable market segment, TISE Sustainable. It is fantastic to play a part in this world-first issuance, which combines innovative technology and sustainable finance to support the Danish Red Cross in their humanitarian initiatives. This demonstrates the growing demand which we are seeing for listings on both the QIBM and TISE Sustainable and I believe that we have the right environment for listing many more similar catastrophe bonds in the future," said Mr Byrne. 

The humantarian catastrophe bond was the first of its kind when it was issued in March. An initial $3 million was raised for the bond through private placement with specialist cat bond investors to cover the risk of 10 volcanic eruptions across three continents.

In September, Dunant Re IC Limited became the first insurance entity to be accredited and receive a kitemark under the Guernsey International Insurance Association (GIIA) Environmental, Social and Governance (ESG) Framework. Its listing on TISE was facilitated by Replexus ICC, which has become a Member of TISE to act as a Listing Agent for bond listings.

Founder and Director at Replexus ICC, Cedric Edmonds said he's delighted with the TISE listing.

CedricEdmonds.jpg

Pictured: Cedric Edmonds has helped TISE achieve another world first listing.

"TISE provides a cost-effective and efficient process for the admission of bonds to a recognised stock exchange, which is hugely valued by all those involved in the transaction, including the sponsors, the Danish Red Cross, and the investors. We look forward to facilitating further bond issuances which utilise ILS capacity to support humanitarian work via a listing on TISE.”

Pictured top: Anthony Byrne, Head of Bonds at TISE.

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