Cleary Gottlieb represented the Republic of Chile (Chile) in a transaction intended to insure Chile for its financial risk in connection with earthquake events affecting Chile.
The transaction consisted of a catastrophe bond (cat bond) issuance by the World Bank’s International Bank for Reconstruction and Development (IBRD) under its catastrophe-linked capital at risk notes program. This transaction constitutes the second time that Chile participates in a cat bond issuance by the IBRD.
The cat bonds will provide Chile with per-occurrence insurance protection across a three-year period, with maturity scheduled for March 2026. The deal priced on March 17, 2023, and is expected to close on March 24, 2023.