The pricing for Canadian alternative investment manager and multinational Brookfield Corporation’s first catastrophe bond has been updated and lowered again, with the company now aiming to secure the $100 million Aragonite Re Ltd. (Series 2024-1) deal priced below the initial guidance.
Brookfield Corporation entered the catastrophe bond market for the first time in March, with a target to secure $100 million in property catastrophe insurance from the capital markets for its Brookfield Property Group arm and related entities.
Through this Aragonite Re 2024-1 catastrophe bond, Brookfield will secure a multi-year source of North American named storm and earthquake insurance protection, providing it with per-occurrence and indemnity trigger protection across the US and Canada, running across three annual risk periods to March 30th 2027.
The $100 million of Class A notes come with an initial expected loss of 0.59%. They were initially offered to cat bond investors with spread price guidance in a range from 5.75% to 6.50%.
As we reported last week, the price guidance was lowered, with a new range of spreads from 5.5% to 5.75% on offer.
Now, we’ve learned that the price guidance was reduced again, to a range of 5.25% to 5.5%.
Which indicates that Brookfield will price its debut Aragonite Re catastrophe bond below the low-end of the initial price guidance, which will be a strong result for this new cat bond market entrant.
You can read all about this new Aragonite Re Ltd. (Series 2024-1) catastrophe bond transaction and every other cat bond ever issued in our Artemis Deal Directory.
