CAT BONDS BLUE DANUBE AND AKIBARE II ARE UPSIZED

Two recently announced catastrophe bonds have been upsized following strong investor demand. Blue Danube, an Allianz-sponsored SPV hat would have offered protection against US hurricane, US earthquake, Canada earthquake, Caribbean and Mexican hurricane, has been upsized by $40m to $240m, with both A and B tranches increasing in size by $20m. Class A, the safer risk, sold at 6%, while Class B sold at 10.75%. Akibare II, a Mitsui Sumitomo-sponsored single-tranche Japanese typhoon cat bond, has been upsized to $130m from $90m. Swiss Re is the risk-transfer counterparty, and the coupon was 3.75%, slightly higher than had been hoped for by the issuer.