World(REUTERS) The World Bank has launched a "pandemic bond" to support an emergency financing facility intended to release money quickly to fight a major health crisis like the 2014 Ebola outbreak. World Bank Group President Jim Yong Kim delivers his speech during the Belt and Road Forum for International Cooperation in Beijing, China May 14, 2017. This includes today's $425 million transaction, comprising $320 million raised through the bond market and $105 million through swaps transactions. The transaction was oversubscribed by 200 percent, attracting interest from dedicated cat bond investors, asset managers, pension funds and endowments, the World Bank said. For the pandemic bond, the World Bank will pay bondholders a coupon that replicates an insurance premium plus a funding spread, in return for a payout if the bond is triggered.

Source: Sunday Times June 29, 2017 02:15 UTC