Clifford Chance Advised Aon Securities On Nakama's $150 Million Catastrophe Bond For Zenkyoren
Global law firm Clifford Chance has advised Aon Securities as the initial purchaser of $150 million catastrophe bonds
Clifford Chance Advised Aon Securities On Nakama's $150 Million Catastrophe Bond For Zenkyoren
Global law firm Clifford Chance has advised Aon Securities as the initial purchaser of $150 million catastrophe bonds (cat bonds) issued by Nakama Re Pte Ltd. These bonds provide Zenkyoren, the Japanese National Mutual Insurance Federation of Agricultural Cooperatives, with $150 million in earthquake coverage. The notes will offer Zenkyoren reinsurance for Japanese earthquakes over a five-year period.
Since the late 1990s, the cat bond market has been a crucial mechanism for the insurance sector, offering financial safeguards against substantial payouts following natural disasters. Nakama Re Pte Ltd's issuance follows a record-setting Q1, during which over $4.2 billion of new risk capital entered the market.
The transaction was jointly led by Clifford Chance Partners Will Winterton in London, Lena Ng in Singapore, and Gareth Old in New York.
The deal team included lawyers from Global Financial Markets practice, spanning the New York, London, and Tokyo offices. Key team members were Lead Senior Associate Brij Patel in London, Counsel Chihiro Ashizawa in Tokyo, Associate Tiffany Kong in New York, Senior Associate Allison Tan in Singapore, Associate Nao Kondo in Tokyo, and Trainees Serena Polycarpou and Adelina Maghet, both based in London.
Lena Ng commented, "Zenkyoren's decision to return to Singapore for its 2024 catastrophe bond issuance through its special purpose reinsurance vehicle is a strong affirmation of Singapore's growing stature as a leading hub for Insurance-Linked Securities (ILS) in Asia. This move not only highlights the sophisticated infrastructure and conducive regulatory environment that Singapore offers but also underscores the confidence that global entities like Zenkyoren place in the region's capacity to support complex financial instruments."
Will Winterton added, "We are proud to have advised Aon Securities on this significant catastrophe bond issuance. This transaction demonstrates the continued interest in the ILS market, and we are pleased to have provided our legal expertise to its success."