Sidley Austin partners Joseph Gottlieb, Sherlyn Lau and Dominic James advised the International Bank for Reconstruction and Development (IBRD) on its USD150 million catastrophe (CAT) bond, the second such issuance in Hong Kong.
The newly introduced catastrophe bonds serve as a type of insurance-linked security connected to specific natural disasters such as a hurricane or earthquake. If a bond-linked catastrophe occurs, holders will receive a payout; otherwise they will earn an interest rate over the life of the bond.
Hong Kong had previously privately issued the first 144A CAT bond in 2022, raising USD150 million. A year later, IBRD issued its USD350 million CAT bonds in Hong Kong, the first listing of its kind in the Asia financial hub.
