Leveraging Catastrophe Bonds As a Mechanism for Resilient Infrastructure Project Finance
The RE.bound initiative has been developed by Rockefeller Foundation, Swiss Re, Goldman Sachs and RMS to link risk transfer coverage for cities with financing for resilient infrastructure. The initiative is developing an innovative version of catastrophe bonds which will provide insurance coverage for catastrophic risks while at the same leveraging the capital in the bonds to finance infrastructure investment to strengthen resilience. The idea is that the investments in infrastructure will reduce the impacts of future hazards thus increasing the liekilhood of a a return on the catastrophe bond.
In a way the concept links catastrophe bonds and social impact bonds.
RE;bound is one of several programs being developed within the RE:bound partnership.
Leveraging Catastrophe Bonds As a Mechanism for Resilient Infrastructure Project Finance (report), ‘RE:bound to apply catastrophe bond tech to project financing’ (article on Artemis), RE:focus partnership (website), RE:invest Roadmap for Resilience (related initiative)
http://www.refocuspartners.com/reports/RE.bound-Program-Report-December-2015.pdf, http://www.artemis.bm/blog/2015/04/07/rebound-to-apply-catastrophe-bond-tech-to-project-financing/, http://www.refocuspartners.com/, http://www.reinvestinitiative.org/reports/RE.invest_Roadmap-For-Resilience.pdf