Republic of Chile in $500 Million Catastrophe Bond

February 7, 2018

Cleary Gottlieb represented the Republic of Chile in a transaction intended to insure Chile for its financial risk in connection with earthquake events affecting the nation.

The transaction consisted of a Cat Bonds issuance by the IBRD under its catastrophe-linked Capital at Risk Notes program, in the context of the issuance of five series of Cat Bonds covering the four Pacific Alliance countries (Chile, Colombia, Mexico, Peru) against earthquake losses. It is the first time Chile has participated in a Cat Bond issuance.

The Cat Bonds will provide Chile with per-occurrence insurance protection across a three-year period, with maturity scheduled for February 2021. The deal launched on February 7, 2018.