United Broker News

CARRIB - WTW designs 'game changing' climate-focused parametric solution

Broker Willis Towers Watson has announced its involvement in the design and placement of the world’s first parametric insurance transaction capable of making possible the Government of Belize’s ground-breaking debt restructuring for marine conservation.

Munich Re participated in an underwriting capacity, with the insurance protection having played a crucial role in enabling Belize’s refinancing of its sovereign debt under The Nature Conservancy’s (TNC) Blue Bonds for Ocean Conservation programme.

TNC’s $364 million transaction with Belize was supported by Credit Suisse as sole structuring bank and arranger of the financing, and the U.S. International Development Finance Corporation as political risk insurance provider.

Willis Towers Watson created the world’s first sovereign debt “catastrophe wrapper” for this transaction.

The wrapper provides insurance protection to cover Belize’s loan repayments after hurricane events.

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