The International Stock Exchange lists world-first humanitarian catastrophe bond

November 29, 2021

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The International Stock Exchange (TISE) has welcomed a world-first, Danish Red Cross-sponsored catastrophe bond to listing on its Qualified Investor Bond Market (QIBM) and admission to its sustainable market segment, TISE Sustainable.

Dunant Re IC Limited – an Incorporated Cell of Replexus ICC (Guernsey) Limited – has issued the first humanitarian catastrophe bond covering pure volcanic eruption. The bonds are settled using Replexus’ unique blockchain-based Insurance Linked Securities (ILS) platform, ILSBlox.

Anthony Byrne, Head of Bond Markets at TISE, said: “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.”

The bond was the first of its kind when issued in March 2021. An initial $3 million 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 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.

The listing on TISE of the Dunant Re Series 2021-1, Class VE USD3,000,000 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.

Cedric Edmonds, Founder and Director at Replexus ICC, said: “I am delighted with this listing on TISE. 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.”