A world-first Danish Red Cross-sponsored catastrophe bond has been listed on the Qualified Investor Bond Market (QIBM) of The International Stock Exchange (TISE) and admitted to its sustainable market segment, TISE Sustainable.
Dunant Re IC – an incorporated cell of Replexus ICC (Guernsey) – has issued the first humanitarian catastrophe bond covering pure volcanic eruption.
The bonds are settled using Replexus’ blockchain-based insurance linked securities (ILS) platform, ILSBlox.
Anthony Byrne (pictured), Head of Bond Markets at TISE, commented: “This issuance combines innovative technology and sustainable finance to support the Danish Red Cross in its humanitarian initiatives.
"This demonstrates the growing demand we are seeing for listings on both the QIBM and TISE Sustainable and I believe we have the right environment for listing many more similar catastrophe bonds in the future.”
The bond was the first of its kind when issued in March 2021. An initial $3m was raised through private placement with specialist cat bond investors to cover the risk of 10 volcanic eruptions across three continents.
In September, Dunant Re IC became the first insurance entity to be accredited and receive a kitemark under the Guernsey International Insurance Association's environmental, social and governance framework.
The listing on TISE of the Dunant Re Series 2021-1, Class VE $3,000,000 principal-at-risk, callable, participating notes due 2024 was facilitated by Replexus ICC, which has become a Member of TISE to act as a Listing Agent for bond listings.