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United States : GC Securities Places $30 Million World Bank Cat Bond for CCRIF

July 3, 2014

The placement of Floating Rate CCRIF Catastrophe-Linked Capital has been declared by GC Securities, a division of MMC Securities Corp at Risk Notes, with notional principal of $30,000,000, published by the International Bank for Reconstruction and Development, who is a member institution of the World Bank Group.

The cat bond alleviates the transfer of risk on behalf of the Caribbean Catastrophe Risk Insurance Facility (CCRIF), a risk-pooling facility, which is created to limit the financial affect on its sixteen Caribbean member governments resulting from catastrophic earthquakes and hurricanes by rapidly offering financial liquidity when a policy is set off.

GC Securities bulletin observed that this is the first time that the CCRIF has utilized the cat bond market and the first catastrophe bond directly issued by the World Bank. The bond provides three years of annual aggregate protection for hurricane and earthquakes affecting 16 Caribbean countries participating in the CCRIF.

GC Securities served as the sole placement agent of the notes and co-structuring agent on behalf of CCRIF.

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Source: TendersInfo (India)

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