GC Securities said today that it completed the latest catastrophe bond transaction for Munich Re. The $75 million deal called, Queen Street VIII Re Ltd is the first cat bond in the Queen Street series to feature Australian cyclone risk.
It is the reinsurer’s seventh in the Queen Street series since 2011 and eighth Queen Street cat bond in total.
Queen Street VIII also securitizes U.S. hurricane risk. The Principal At-Risk Notes provide 2.5 years of per occurrence protection for named storms affecting the United States and 2.9 years of per occurrence protection for cyclones affecting Australia.
GC Securities served as sole bookrunner on Queen Street Re VIII Limited. GC Securities has raised $500M of catastrophe bond protection for Munich Re since 2011 through the offering of five of the eight Queen Street catastrophe bonds issued.
The latest cat bonds priced with a coupon of 6.50%, according to GC Securities.
“Large investor flow this past year has presented a market opportunity for catastrophe bond issuers that was very much to the benefit of Munich Re’s Queenstreet Re VIII deal,” said Chi Hum, global head of ILS distribution at GC Securities. Strong investor interest and a deep book facilitated good execution at an attractive price for this capacity.”