The International Stock Exchange (TISE) has listed the world’s first humanitarian catastrophe bond, which covers pure volcanic eruption.
The bond was issued by Dunant Re IC, an Incorporated Cell of Replexus ICC (Guernsey), and has been listed on TISE’s Qualified Investor Bond Market (QIBM) and admission to its sustainable market segment, TISE Sustainable.
The bonds are settled using Replexus’ unique blockchain-based Insurance Linked Securities (ILS) platform, ILSBlox.
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 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.
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.”
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.”
