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Pandemic bonds are designed so investors pay in the event of an outbreak

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The PEF is an innovative, insurance-based financing mechanism designed to finance
response efforts in IDA-eligible1
countries to tackle rare, high-severity disease outbreaks, with the
aim of preventing such outbreaks from becoming pandemics

The PEF covers six viruses that are most likely to cause a pandemic. These include new Orthomyxoviruses (new influenza pandemic virus A), Coronaviridae (SARS, MERS), Filoviridae (Ebola, Marburg) and other zoonotic diseases (Crimean Congo, Rift Valley, Lassa fever).

A group of unique bondholders will either reap massive profits or lose hundreds of millions of dollars as the coronavirus outbreak escalates.

activated after 3 months 😉

 

https://www.worldbank.org/en/news/press-release/2017/06/28/world-bank-launches-first-ever-pandemic-bonds-to-support-500-million-pandemic-emergency-financing-facility

Source World Bank

http://documents.worldbank.org/curated/en/176611494727224133/pdf/IDA-Financing-for-PEF-April-19-2017-04202017.pd

https://www.worldbank.org/en/search?q=Pandemic+Bonds

 

The World Bank’s pandemic bonds are not paying out for Ebola

https://www.economist.com/finance-and-economics/2019/08/29/the-world-banks-pandemic-bonds-are-not-paying-out-for-ebola

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