RenRe gets new $250m Mona Lisa Re cat bond with 11% drop in price

RenRe gets new $250m Mona Lisa Re cat bond with 11% drop in price

RenaissanceRe has now secured its 67% upsized new Mona Lisa Re Ltd. (Series 2021-1) catastrophe bond deal at $250 million in size, while the discount coupon has now been repaired at the lowest-end of decreased price guidance.Bermuda-headquartered worldwide reinsurance company RenaissanceRe (RenRe) returned to the disaster bond market with its latest deal previously this month, with a Mona Lisa Re issue intending to offer a $150 million single tranche of notes to cat bond investors.
With feline bond market conditions strong and capability amongst feline bond financiers and funds increasing, RenRe gained from this and managed to protect its newest cat bond some 67% bigger, as a $250 million issuance.
At the very same time, RenRe has actually protected the $250 million of retrocessional catastrophe reinsurance protection at keen pricing, with the notes now having their voucher repaired at the bottom-end of assistance, sources discussed.
The Mona Lisa Re 2021-1 feline bond will supply $250 million of collateralized retrocessional reinsurance cover to RenRe and its likewise to its DaVinci Re Ltd. automobile, the third-party capital backed equity-based joint-venture reinsurer run by the business.
RenRe, DaVinci Re and affiliates will gain from $250 countless retro reinsurance throughout a 4 year term, securing them versus losses from U.S., Puerto Rico, U.S. Virgin Islands and D.C. called earthquakes and storms, along with Canada earthquakes, on a market loss trigger and yearly aggregate basis.
The $250 million of Series 2021-1 Class A keeps in mind to be issued by Mona Lisa Re will have a preliminary expected loss of 3.71%.
At launch, the notes were marketed to feline bond financiers with coupon spread guidance of 7.5% to 8.25%.
That spread guidance was consequently minimized, thanks to investor demand, to a modified and decreased variety of 7% to 7.5%.
Now, were informed that the discount coupon has actually been repaired for this issuance at the lowest-end of the reduced variety, at 7%, which represents a roughly 11% drop in price from the initial assistance mid-point, another cat bond displaying strong execution and delivering a good result for its sponsor.
You can check out all about this most current Mona Lisa Re Ltd. (Series 2021-1) disaster bond transaction from RenaissanceRe and every other cat bond issued in our comprehensive Deal Directory.

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