Catastrophic bond in Mexico

The catastrophe bond issued by the Government of Mexico, in collaboration with the World Bank, provides financial protection against natural disasters such as earthquakes and tropical cyclones. This bond, for an amount of 485 million dollars and with a term of 4 years, is designed to mitigate the economic impact of severe natural events, specifically covering certain parameters of severity and location of disasters. The bond is issued under the World Bank's "risk capital" notes program, which allows the transfer of natural disaster risks to the capital markets. It is structured in four classes that cover different magnitudes of earthquakes and cyclones in the Atlantic and Pacific basins. In 2024 it was renewed for the period 2024-2028.