Citigroup's Agency and Trust Services business, has been named indenture trustee on the $150MM Embarcadero Reinsurance Ltd. catastrophe bond transaction with the California Earthquake Authority (CEA) as ceding insurer.
Embarcadero Re, a Bermuda-based special purpose reinsurance vehicle, will provide the CEA with multi-year, collateralized reinsurance protection against earthquake risk.
“The California Earthquake Authority bond issue is a first-to-market transaction for the Insurance-Linked Securities (ILS) market and Citi is pleased to have been named Indenture Trustee," said Alan Smith, global head of issuer services for Citi. "Citi’s extensive experience in corporate trust enabled us to support the innovative solution for this unique and highly successful transaction that fully addressed the CEA’s needs.”
