Walkers Acts as BSX Listing Sponsor on Peak Re's Landmark 144A Catastrophe Bond

Walkers Listing Services (Bermuda) Limited ("Walkers") is delighted to have acted as Bermuda Stock Exchange listing sponsor to Peak Reinsurance Company's ("Peak Re") first ever catastrophe bond ("cat bond") issuance: the Black Kite Re Limited ("Black Kite") Principal At-Risk Variable Rate Note Program and US150m Series 2022-1 Class A Principal At-Risk Variable Rate Notes.

Black Kite is incorporated in Hong Kong and authorised by the Insurance Authority of Hong Kong to undertake special purpose reinsurance business in or from Hong Kong. Not only is Black Kite the largest cat bond so far to be issued out of Hong Kong, it is also the first ever full 144A cat bond to be issued from Hong Kong. In addition, the Black Kite Re cat bond is now expected to become the first to use the Pilot Insurance-linked Securities Grant Scheme introduced by the Government of Hong Kong last year. 

The cat bond is designed to provide Peak Re with US$150 million of Japanese typhoon industry-loss based retrocessional protection and closed at double the target value of US$75 million.

Sarah Demerling, partner at Walkers commented "We were delighted to be a part of this historic and exciting cross border transaction. Notwithstanding the emergence of new jurisdictions into the ILS catbond market, it was very pleasing and fitting to see the Bermuda Stock Exchange chosen as the listing venue."

Walkers' Bermuda listing team was led by partner Sarah Demerling with assistance from senior associate Cathryn Minors. Walkers' Cayman fiduciary team also assisted in acting as share trustee and the setting up of a purpose trust for the structure.

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