Cat Bond Market Continues to Grow
LONDON, Nov. 3, 2015 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has been appointed trustee, paying agent, account bank and custodian for a US$100 million Turkish cat bond transaction designed to protect insurers against the risks of potential earthquakes.
The bonds were issued by Bosphorus Ltd., a Bermuda-based special purpose reinsurer created by the Turkish Catastrophe Insurance Pool (TCIP), the originator of the transaction. Eureko Sigorta A.S. (Eureko Sigorta) is the institution administrator of the bonds and acts on behalf of TCIP to provide day-to-day administrative services. Cat bonds are risk-linked securities that transfer a specified set of risks associated with hurricanes or earthquakes from an insurer or a nation state, to investors.
Can Akın Caglar, CEO of Eureko Sigorta and board member of TCIP, commented, "TCIP is pleased with how the capital markets received the Turkey earthquake cat bond issuance. We, as TCIP, are proud to be the sponsor of such a successful transaction."
Suha Cele, Executive Board Member of Eureko Sigorta, added, "Our previous bond Bosphorus 1 Re was the first cat bond covering Turkish perils and a real success story. We are delighted to see that this second bond was also well received by the capital markets. In view of the constantly growing portfolio of TCIP, our cooperation with the capital markets will continue in the near future which will enable TCIP to diversify its reinsurance buying and utilize its multi-year capacity programme at stable prices."
The global cat bond market continues to grow. Over the last 10 years the amount of cat bonds outstanding has increased from about $6 billion to $23 billion1. BNY Mellon is a leading provider of corporate trust services to the insurance-linked securities market.
"TCIP's innovative use of the capital markets illustrates the continuing growth of the insurance-linked securities market," said Paul Traynor, head of insurance services for Europe, the Middle East and Africa at BNY Mellon. "The combination of insurers working with the capital markets, governments and technology experts can provide much-needed protection in vulnerable areas of the world."
BNY Mellon opened an office in Istanbul in 1986 and has been servicing Turkish clients since the early 1900s. BNY Mellon offers a range of solutions to the Turkish market including treasury services, corporate trust, depository receipts, syndicated loans, global markets and trade finance; and closely follows emerging opportunities in investment servicing and investment management in the Turkish capital markets.
BNY Mellon is the premier provider of corporate trust services to the debt capital markets, providing customized and market-driven solutions to investors, bondholders and lenders. As of September 30, 2015, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 60,000 debt-related issues globally. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services including trustee, paying agency, fiduciary, escrow, and other financial services. The business administers a wide array of assets and types of programs to multinational corporations, financial institutions, governments and their agencies, and the banking, securities, and insurance industries.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Sept. 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
This press release is issued by The Bank of New York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise stated as of September 30, 2015.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square, London E14 5AL. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorized by the Prudential Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
+44 20 7163 4109
+1 212 922 7859
SOURCE BNY Mellon