The World Bank Capital at Risk Notes program facilitates risk transfer solutions for the World Bank and its clients using the capital markets. Under this program, the World Bank issues notes where some or all of the investors’ principal may be at risk, such as catastrophe bonds (cat bonds) and pandemic bonds.
Capital at Risk Notes are issued under the World Bank’s Global Debt Issuance Facility and receive the same tax and securities law exemptions, but they may not be assigned any security rating or may be assigned a lower security rating than the Facility.
Benefits to Investors
- Potential yield enhancement
- Opportunity to include new perils and regions to diversify portfolios
Examples of Capital at Risk Notes issues
|Amount||Coupon or Type||Launch |
USD 30 million
6M LIB +6.3%
Redemption Amount: The nominal amount reduced by all principal reductions as a result of applicable Caribbean tropical cyclone or earthquake events (as defined in the terms of the notes). ISIN US45905UPP39