Plenum Investments Ltd. substantially engaged in the World's First CAT Bond Transaction of the Red Cross (english)

    Plenum Investments Ltd. substantially engaged in the World's First CAT Bond Transaction of the
Red Cross

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DGAP-News: Markus Hill / Key word(s): Funds/Cryptocurrency / Blockchain
Plenum Investments Ltd. substantially engaged in the World's First CAT Bond
Transaction of the Red Cross

25.03.2021 / 15:51
The issuer is solely responsible for the content of this announcement.

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Sponsored by the Danish Red Cross, the newly launched CAT bond is the first
bond in the world to cover volcano catastrophe risks. It aims to provide
immediate financial assistance for disaster relief, mainly in developing
countries. According to the initiators, about 500 million people worldwide
live in proximity to 1,500 active volcanoes.

Launched as a pilot project, the CAT bond is the result of a global
partnership involving non-profit humanitarian oganizations, reinsurers,
modellers, structurers as well as capital market players.

Dirk Schmelzer, portfolio manager and member of the sustainability committee
of Plenum Investments Ltd. in Zurich, says: «This CAT bond is groundbreaking
in that it is settled with blockchain technology and applies a new method of
modelling. The volcano CAT bond is an impressive example of the use of
catastrophe bonds in the humanitarian field. While the World Bank embarked
on this path already a few years ago, it is new that this concept is now
also implemented in the non-government sector.»

With regard to portfolio composition, the new CAT bond is a welcome
diversifier for conservatively oriented CAT bond funds, since the risk is
well modeled and the parametric-based payout mechanism ensures a high level
of transparency. Also, with a multiplier higher than two, the risk-return
ratio of this CAT bond is priced such that both sponsor and investor achieve
a balanced cost-income ratio.

«It is to be hoped that this pilot project will inspire imitators. Being
prepared for emergencies is not only a clear commitment to help, but also
proves impressively that the capital market can live up to its social
responsibility through CAT bonds», adds Nico Rischmann, who, together with
Dirk Schmelzer, is active in the Competence Centre for Sustainability.

The CAT bond of the Red Cross is another milestone on the road to a targeted
protection of the most vulnerable regions of the world. With its significant
financial participation in this issuance, Plenum Investments Ltd. does its
bit to increase awareness of how the asset class of CAT bonds can contribute
to sustainability.

Plenum Investments Ltd.

Plenum Investment Ltd. is an independent investment manager for
institutional and professional clients and specializes in insurance risks.
Its core competence is the management of natural catastrophe and longevity
risks as well as regulatory insurance capital. The investment focus is on
transparent and sustainable investment solutions. Plenum Investments Ltd. is
an established provider in the UCITS CAT bond fund segment and leading in
the sustainability analysis of capital market-based transfers of insurance
risks.

Media contact:

Plenum Investments Ltd. I Nico Rischmann
Email: [e-mail] I Phone: [phone] I www.plenum.ch


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25.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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1178564 25.03.2021

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